Magnetic Resources NL (ASX:MAU) has decided to spin out its non-gold assets being predominantly the nickel and rare earth tenements held around the Julimar area of Western Australia, into a new listed, Aureole Resources Ltd.
The spin-out will enable Magnetic to focus its attention on the ongoing development of its gold assets located around the Laverton region of Western Australia, while simultaneously providing an opportunity for investors to gain increased exposure to the company’s earlier-stage nickel and rare earth exploration projects in Western Australia.
The proposed spin-off assets include six projects covering 523 sq km of ground including, Benjabbering (E70/5537), Goddard (E70/5538), Trayning (E70/5534), Trayning West (E70/6304), and Korrelocking (E70/5771) and Koorda (E70/6305).
All tenements are within 90km out to 150km northeast of Chalice Gold Mines Limited’s Julimar Ni-Pd discovery.
All tenements have been selected based on aeromagnetic interpretation after noting the structural setting of the Julimar complex and the Gonneville mineralized discrete magnetic mineralized Ni- Cu-PGE rich intrusion.
Magnetic will seek shareholder approval for the spin-out of the nickel and rare earths to Aureole at an upcoming General Meeting to be held shortly.
Aureole proposes to undertake an IPO to raise a minimum of A$5 million and up to A$7 million at an issue price of A$0.20 per share. The proposed IPO will include a priority offer to eligible Magnetic shareholders as well as a public offer to new investors.
“ We have decided to spin off these assets to allow for their development as stand-alone assets while we focus on the development of our gold assets,” Managing Director George Sakalidis said.
“The nickel and rare earth assets have significant potential for a major discovery which Magnetic shareholders will continue to maintain exposure to through the large shareholding that Magnetic will continue to hold.”
Ventnor Securities Pty Ltd have been appointed Lead Manager to the IPO.
For further information please visit: https://magres.com.au/
