20/08/2021 - 14:30

Liontown spinout targets $30m

20/08/2021 - 14:30

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Liontown Resources’ non-lithium spinout will hit the ASX boards in October after it raises at least $15 million from an initial public offering.

Tim Goyder will be a director of Liontown spinout Minerals 260. Photo: Gabriel Oliveira

Liontown Resources’ non-lithium spinout will hit the ASX boards in October after it raises at least $15 million from an initial public offering.

Yesterday, Liontown confirmed it would proceed with demerging three exploration assets in Western Australia, including its Moora gold-PGE-nickel-copper project, into a new listed entity called Minerals 260, after foreshadowing the potential transaction in June.

Minerals 260 will also comprise Liontown's 51 per cent share in the Koojan joint venture with ASX-listed Lachlan Star; its Dingo Rocks tenement; and its tenement applications at Yalwest.

The spinout lodged a prospectus with ASIC yesterday to raise between $15 million and $30 million from an IPO, priced at 50 cents per share and led by Bell Potter Securities.

Liontown shareholders will be given priority offer to participate in the raise, with any shortfall to be made available to new investors.

The offer is scheduled to open on August 27 and close on September 29.

The demerger will occur on October 4 through an in-specie distribution of shares, with Liontown shareholders to receive one Minerals 260 share for every 11.91 shares held in Liontown.

Minerals 260 is expected to begin trading on October 15.

Its board includes managing director David Richards, chairman Anthony Cipriano, directors Tim Goyder and Craig Williams, and company secretary Clint McGhie.

Mr Richards was Liontown’s managing director between 2010 and 2021 before transitioning to technical director in June.

Tony Ottaviano is now managing director of the company.

“Following the demerger and IPO, Minerals 260 will be well-funded to pursue an aggressive exploration program, with the immediate intention of following up a number of key targets identified by previous sampling and drilling programs completed by Liontown,” Mr Richards said.

“Early drilling and exploration at the Moora project has yielded some very exciting results, highlighting the potential for one or more significant discoveries in what has emerged as Australia’s most exciting new mineral province at Julimar.”

He said Liontown was a first mover in the region, before Chalice Mining (also chaired by Mr Goyder) discovered its high-grade Julimar deposit.

Liontown was trading 5.6 per cent lower at 4pm AEST to 84 cents per share.

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