PERTH (miningweekly.com) – ASX-listed Strike Resources has announced plans to spin-out its lithium and graphite assets through listing its subsidiary Lithium Energy on the ASX.
Lithium Energy, which will own a 90% interest in the Solaroz lithium project, in Argentina, and the Burke graphite project, in Queensland, is expected to raise some A$9-million through an initial public offering (IPO) of 45-million shares, at a price of 20c each.
Strike on Tuesday told shareholders that the spin-out would create a distinct battery minerals company with a clear focus on the exploration and potential development of its battery mineral assets.
The move would allow Strike to focus on its iron-ore assets, particularly to bring the Paulsens East iron-ore project, in the Pilbara, into production during 2021 and to expand production from its Peruvian Apurimac project.
At the completion of the spin-out, Strike would hold 34.4-million shares in Lithium Energy, comprising a 43% stake in the company post its IPO. Eligible Strike shareholders will have a priority entitlement to apply for Lithium Energy shares based on their pro-rata shareholding in Strike, with an entitlement to apply for a minimum of 10 000 shares.
Any shortfall in applications by Strike shareholders under this priority offer will form a pool of shares available to the public under the IPO.