ASX-Listing Of Junior Explorer Imminent
Australian gold and nickel company, Rox Resources Limited (ASX: RXL) has provided an update to the market in relation to the Cannon Resources Limited demerger, RXL share consolidation and transaction timetable.
The company said unforeseen delays were experienced due to transaction structuring, tax and legal matters. These matters have now been resolved, hence the timetable previously advised has been extended by approximately five weeks.
Cannon is currently a wholly owned subsidiary of Rox. It holds the Fisher East and Collurabbie nickel and base metal assets and is, subject to shareholder approval, to be spun out (via a demerger) and listed on the ASX.
Eligible Rox shareholders will receive new Cannon shares via an in-specie distribution on the basis of approximately 1 ordinary share in Cannon for every 64 shares held in Rox, on a pre-consolidation basis.
The offer structure for the Cannon IPO fund raising has simplified to being a A$6 million Priority Offer to Rox holders allocated on a pro-rata basis. The company has the ability to place shortfall shares (if any) to underpin a minimum subscription of A$6 million.
ASX in-principle approval for listing has been received. A notice of meeting to approve the transaction along with a short form prospectus relating to the Rox in-specie shares are to be lodged shortly. The Cannon Priority Offer IPO prospectus will be lodged at the same time.
Rox Resources Managing Director, Alex Passmore commented that an experienced Board and Management team have been assembled to drive Cannon forward with a renewed focus on growing the nickel assets. Cannon will launch with a strong balance sheet and aggressive exploration plans.
“I am looking forward to completing this demerger as I expect it will unlock the value of Rox’s nickel and base metal assets and allow a crystal-clear focus for Rox to develop Youanmi into a high-grade producing mine. Rox investors will retain exposure to the nickel and base metal assets through a pro-rata holding in Cannon and also receive a priority offer to subscribe for Cannon shares as part of its IPO,” Mr Passmore said.
Cannon Resources CEO, Steve Lynn said the Fisher East and Collurabbie Project Areas contain some of the Australia’s best nickel exploration assets.
“There is significant upside at both projects with most of the existing nickel resources open at depth and along strike. Both projects contain a wealth of prospects and anomalies in the right locations and in the right rocks that have yet to be followed up. The Cannon team looks forward to implementing an aggressive exploration program focussed on unlocking this value.”
