Mineral exploration firm Great Boulder Resources (GBR) is planning to demerge its Yamarna base metals project in Western Australia into a separate new listed entity.
The copper-nickel-cobalt project, which covers nine exploration licences and two prospecting leases, will be spun off to battery metal focused vehicle Cosmo Metals.
Go deeper with GlobalData
Under the proposed demerger, Cosmo will acquire 100% of the Yamarna tenements, located 130km north-east of Laverton in the Eastern Goldfields District.
In return, Cosmo will issue 25 million fully paid ordinary shares, each at a deemed price of A$0.20.
Following the demerger, GBR will retain upside exposure to the Yamarna project, through a 41% to 50% cornerstone equity holding in Cosmo Metals.
Cosmo also plans a stock market float, targeting at least A$5m through the issue of another 25 million shares to the public, and a maximum of A$7m through the issue of 35 million shares, at A$0.20 each.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEligible GBR shareholders will get a priority offer entitlement to take part in the IPO.
Great Boulder managing director Andrew Paterson said: “The transaction also enables Great Boulder and our shareholders to participate in the upside potential of the Yamarna Project with GBR retaining circa 50% of the new entity and by providing a priority offering in the new entity to existing shareholders.”
GBR expects the spin-off to allow it to focus on its high-grade Side Well Gold Project and the shallow, large scale Whiteheads gold project.
Covering an area of approximately 230km², the Whiteheads gold project comprises three exploration licences.
Paterson will serve as the non-executive director of Cosmo Metals.
The Yamarna project consists of two separate areas. These include Winchester to the north with two exploration licences, and Yamarna to the south-east comprising seven exploration licences and two prospecting leases.
The advanced exploration project includes the Mt Venn and Eastern Mafic copper-nickel-cobalt discoveries.
GBR said that the discovery of magmatic-hosted copper-nickel-cobalt sulphide accumulations at Mt Venn was made in 2017 and at the Eastern Mafic Complex in 2018.
