Will Maintain Focus On Australian Gold Developments
Australian gold company, Rox Resources Limited (ASX: RXL) has confirmed its intention to spin-out its Fisher East and Collurabbie nickel and base metal assets to focus on the development of the Youanmi gold project near Mt Magnet, Western Australia.
Rox Resources, Managing Director, Alex Passmore, said the nickel and base metal assets will be demerged into a new company, Cannon Resources Limited. The company proposes a 1 for 15 share consolidation prior to the Cannon transaction to simplify its share structure.”
“The demerger of Rox’s nickel and base metal assets will allow a crystal-clear focus for Rox to develop Youanmi into a high-grade producing mine, while allowing Rox investors to retain exposure to the nickel and base metal assets through a pro-rata holding in Cannon,” Mr Passmore said.
Rox holds substantial nickel assets via its Fisher East and Collurabbie Projects in Western Australia. These projects are also highly prospective for base metals. With the company’s focus shifting to the advanced exploration and development of the Youanmi gold project, the company has been seeking to unlock the value inherent within its nickel and base metal assets.
Mr Passmore said that careful consideration, Rox has determined that a demerger of these assets via an in-specie distribution to Rox shareholders offers the most efficient and direct delivery of value. Specifically, Rox intends to transfer the Fisher East and Collurabbie Projects into a newly formed subsidiary, Cannon Resources Limited, which will subsequently seek listing on the ASX in an initial public offering (IPO) following an equal capital reduction of Rox to be affected by the in-specie, pro-rata distribution of 81% of Cannon’s issued capital to eligible Rox shareholders. Rox shareholders are expected to receive 1 ordinary share in Cannon Resources Limited for every 4.3 shares (approximately) held in Rox on a post-consolidation basis.
The IPO will include a public offer to new investors and a priority offer to eligible existing Rox shareholders.