Blackstone eyes ASX listing for gold spin-out

Blackstone Minerals is planning to demerge its three Western Australian gold projects into a new ASX-listed business, which will seek to raise at least $5 million before June 30.

The new entity, Codrus Minerals, will become the spinout of Blackstone’s Silver Swan, Middle Creek, and Red Gate projects, located in WA’s Eastern Goldfields and Pilbara regions.

Blackstone, led by managing director Scott Williamson, said the move would allow the business to focus on its flagship Ta Khoa nickel-copper-PGE project in Vietnam, which includes a nickel mine currently under care and maintenance.

Its Codrus subsidiary will launch an initial public offering (IPO) within the June quarter, targeting a minimum raise of $5 million.

Blackstone’s shareholders will be offered priority allocation of shares under the IPO, and the company will retain about 50 per cent of the equity in Codrus.

Mr Williamson said Codrus would have a dedicated management team focussed on driving the value of Blackstone's non-core assets.

“Codrus will provide an excellent platform and catalyst for both growth and monetisation of these assets," he said.

“The proposed transaction also better positions Blackstone to focus on the development of the Ta Khoa project.”

Ta Khoa, situated 160 kilometres west of Hanoi, includes a 450 tonnes per annum processing plant and permitted mine facilities, as part of the past-producing Ban Phuc nickel mine.

Blackstone mid-last year exercised its option to acquire 90 per cent of the project from Vietnam-based AMR Nickel.

Shares in Blackstone were up 2.5 per cent at 1:10pm AEST to trade at 42 cents.