Posted on 30 Oct 2020
Jupiter Mines’ board has approved the demerger and subsequent initial public offering of its Central Yilgarn Iron Ore Project. The move will create an ASX-listed company that will develop the Mount Mason direct shipping ore (DSO) hematite project, Kallanish notes.
Jupiter says the demerger will be achieved via a distribution of the new company’s shares in-specie to Jupiter shareholders, in proportion to their existing shareholding in Jupiter. Shareholders of Jupiter will also be offered the chance to acquire further shares above their in-specie allocation. Jupiter will retain a minority stake in the new firm.
Subject to approvals, the demerger and IPO are expected to be completed in the first quarter of 2021.
Jupiter has appointed Greg Durack as the chief executive to lead the IPO and implement the stragegy of the new company, which will be headquartered in Perth.
Following the merger, Jupiter says it will become a “pure-play” manganese company, with the aim to continue to maintain its strong balance sheet and high payout ratio.
Jupiter’s Tshipi Borwa joint venture manganese ore mine in South Africa saw sales in the six months through August fall -29% on-year to 1.22 million tonnes.
Jupiter said last year it plans to restart the Central Yilgarn Iron Ore Project, which includes Mount Ida and Mount Mason. This completed a feasibility but was suspended due to environmental and financial problems.
The firm has a three-pronged strategy for Central Yilgarn. This involves the development of Mount Mason on a fast track basis, and a consolidation platform for growing the existing DSO resource base. Lastly, it will explore creative options to advance Mount Ida in the mid-term, leveraging upon the existing rail and port infrastructure and the dwindling DSO resources in the Yilgarn.
Source:Kallanish
