The plan follows the completion of a strategic review of Strickland’s portfolio that determined that a demerger of the two projects would be optimal to maximise shareholders’ value.
Strickland said it undervalues the Iroquois and Bryah Basin Projects within its existing company structure.
The spin-out of the two WA projects is planned to be completed in the first quarter of 2023.
Strickland Metals owns an 80% stake in the Iroquois project while Gibb River Diamonds owns the remaining 20% interest. Strickland also holds a 100% stake in Bryah Basin Project.
As part of the demerger, the firm will create a dedicated company focused on WA base metals exploration to manage the two projects.
Strickland plans to list the new entity on the Australian Securities Exchange (ASX ) and issue its shares to existing shareholders at no cost on a pro-rata basis, subject to regulatory and shareholder approval.
Strickland Metals CEO Andrew Bray said: “The main focus of Strickland’s management and technical team over 2022 has been on rapidly advancing our flagship Millrose gold project, and pleasingly we have successfully delivered that outcome for shareholders.”
At the Iroquois project, Strickland carried out soil and rock-chip geochemical sampling and various geophysics surveys that yielded several additional targets. The drilling campaign at the project is planned to start in early 2023.
Bray added: “The work completed to date has shown that Iroquois warrants development as a standalone ASX-listed base metals company. Should the spin-out proceed as proposed, Iroquois will be front-and-centre of the new company.
“With the addition of the Bryah Basin project, the new company will also have a largely greenfield project in a highly prospective area to begin advancing.”