Focuses On World Class Vietnam Nickel Project
Blackstone Minerals Limited (ASX:BSX), best known for its exciting nickel developments in Vietnam, has decided to spin out certain non-core gold assets into a new Initial Public Offering (IPO) to be known as Codrus Minerals Limited.
Managing Director, Scott Williamson, said the intention is that Codrus will undertake an IPO and seek a listing on the Australian Securities Exchange (ASX).
The company currently plans to spin out its Record Mine Project, Silver Swan South Project, Red Gate Project, and Middle Creek Project, via its wholly owned Australian subsidiary, Codrus.
The Gold Bridge project is located within the BC porphyry belt in British Columbia, Canada with large scale drill targets prospective for high grade gold- cobalt-copper mineralisation. In Australia, Blackstone is exploring for nickel and gold in the Eastern Goldfields and gold in the Pilbara region of Western Australia.
Highlights of the Proposed Transaction include:
• The proposed transaction reiterates Blackstone’s primary focus on the flagship Ta Khoa Nickel-Copper-PGE project in Vietnam, and follows an ongoing strategy to provide additional benefit to Blackstone shareholders through maximising value from the Company’s non-core assets;
• The company determined a spin out of the Projects into Codrus as optimal compared to an asset level divestment, on the basis that it enables the transfer of Blackstone’s knowledge of the Projects and ensures exposure to exploration upside is retained for Blackstone shareholders;
• Blackstone to retain approximately 50% of the equity in Codrus upon successful completion of the IPO; and
• Blackstone shareholders will be offered a priority allocation in the Codrus IPO pursuant to the forthcoming prospectus.
“The Codrus spin out will see a dedicated management team focussed on driving value into Blackstone’s non-core assets. Codrus will provide an excellent platform and catalyst for both growth and monetisation of these assets,” Mr Williamson said.
The Proposed Transaction also better positions Blackstone to focus on the development of the Ta Khoa Project.”
Codrus intends to undertake an IPO of its securities in Q2 of 2021 to facilitate admission to the Official List of the ASX. It is currently anticipated that the prospectus to be lodged by Codrus in relation to the IPO will seek to raise a minimum $5,000,000.
Existing Blackstone shareholders will be offered a priority allocation in the Codrus IPO pursuant to the forthcoming prospectus. The terms of the priority offer will be set out in further detail in the prospectus. Blackstone to retain approximately 50% of the equity in Codrus upon successful completion of the IPO.
Blackstone is developing the district scale Ta Khoa Project in northern Vietnam where the company has a maiden resource and scoping study for the large-scale Ban Phuc Nickel-PGE deposit. The Ta Khoa Nickel-Copper-PGE Project has existing modern mine infrastructure built to international Standards including a 450ktpa processing plant and permitted mine facilities.