Posted on 05 Jan 2023
Australian miner Magnetic Resources has decided to spin out its non-gold assets, which are predominantly the nickel and rare earth tenements held around the Julimar area of Western Australia, into a new listed company, Aureole Resources (Aureole), Kallanish notes.
Aureole proposes to undertake an IPO to raise a minimum of AUD 5 million ($3.39m) and up to AUD 7m at an issue price of AUD 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
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. It will simultaneously provide 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 6 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 mineralised discrete magnetic mineralised nickel-copper-platinum-group element (PGE) rich intrusion.
Magnetic will seek shareholder approval for the spin-out of nickel and rare earths to Aureole at an upcoming general meeting to be held shortly.
“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. 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," Magnetic managing director George Sakalidis says.
Source:Kallanish
