Centaurus Metals will divest some of its Australian gold and base metal assets to a new Initial Public Offering (IPO) to focus on its Brazilian iron ore interests.
Centaurus Metals will divest some of its Australian gold and base metal assets to a new Initial Public Offering (IPO) to focus on its Brazilian iron ore interests.
The new company will be called Southern Crown Resources.
Southern Crown is proposing to list on the Australian Securities Exchange (ASX) at 25 cents by 31 October 2010.
The Dish Gold project in New South Wales and the Percyvale Gold project in Queensland will be sold to Southern Crown for 1.25 million shares in the IPO.
This will represent about 5 per cent of the post IPO issued capital of the company.
Centaurus will be issued with 2 million performance options.
One million of these shares will vest upon the definition of a resource of 250,000 gold equivalent ounces at the Dish and one million of which will vest upon the definition of a resource of 250,000 gold equivalent ounces at Percyvale.
Centaurus shareholders are expected to be offered a priority entitlement in the IPO.
"We are very pleased to be able to realise value for our non-core Australian gold and base metal assets by divesting them to a new dedicated Australian exploration company," said Centaurus' managing director, Darren Gordon
"We look forward to working with and supporting Southern Crown through the IPO process," said Mr Gordon.
Full company statement below:
International iron ore company Centaurus Metals Ltd (ASX Code: CTM) is pleased to announce that it has entered into an agreement to divest some of its non-core gold and base metals assets in Australia to a new Initial Public Offering (IPO) to be called Southern Crown Resources Ltd ('Southern Crown').
The proposed divestment is consistent with the Company's focus on developing its portfolio of Brazilian iron ore assets, where it is aiming to establish an initial production base in the "Iron Quadrangle" region producing and selling 3Mtpa of high-grade iron ore to the Brazilian domestic steel industry by the end of 2013.
The agreement covers the Dish Gold Project in New South Wales and Percyvale Gold Project in Queensland, both of which are to be sold to Southern Crown for 1,250,000 shares in the IPO which will represent approximately 5% of the post IPO issued capital of the Company. Southern Crown is proposing to list at 25 cents by 31 October 2010.
In addition, Centaurus Resources will be issued with 2 million performance options, of which 1 million will vest upon the definition of a resource of 250,000 gold equivalent ounces at the Dish and 1 million of which will vest upon the definition of a resource of 250,000 gold equivalent ounces at Percyvale.
It is expected that the Centaurus shareholders will be offered a priority entitlement in the IPO.
Centaurus' Managing Director, Mr Darren Gordon said: "We are very pleased to be able to realise value for our non-core Australian gold and base metal assets by divesting them to a new dedicated Australian exploration company. We look forward to working with and supporting Southern Crown through the IPO process."
Centaurus has recently announced positive drilling results from its Passabem Iron Ore Project in Brazil, which is expected to lead to an increase in resources at this project and has commenced resource definition and upgrade drill programs at both its Jambreiro and Itambe Iron Ore Projects.
