Middle Island Resources (MDI) has confirmed plans to demerge its Barkly copper-gold project in Northern Territory (NT), Australia.
As per the plan, which has been approved by the company’s board, the company will demerge its fully owned subsidiary Barkly Operations (BOPL), which owns the Barkly copper-gold project.
The company said that the spinoff comes as its market capitalisation is not giving proper value to the Barkly copper-gold project.
It also cited the sentiment for copper, and the potential scale and quality of the project for the decision.
Spread over an area of 4,411km², the Barkly copper-gold project comprises up to 12 exploration licences and applications, as well as Tier 1iron oxide-copper-gold (IOCG) targets.
In a press statement, MDI said: “The IOCG potential extends along the interpreted, fault-bounded East Tennant Ridge and is principally defined by magnetic, gravity and magneto-telluric anomalies beneath the Georgina Basin, between Tennant Creek in the NT and Mt Isa in Queensland.”
Subject to Middle Island Resources’ shareholders’ approval, BOPL will be placed for an initial public offering (IPO) on the Australian Securities Exchange (ASX).
Middle Island Resources, however, expects the BOPL to evoke strong interest after its demerger.
Upon completion of the demerger, Middle Island Resources plans to focus on streamlining shareholder value for its flagship Sandstone gold project in Western Australia.
Middle Island managing director Rick Yeates said: “The demerger of BOPL will provide investors two opportunities to grow value; in Middle Island as a more advanced pure gold exploration and development company, and in BOPL as it commences greenfields exploration of an exciting new copper-gold province.”