01/02/2017 - 13:49

Local demerger plans move forward

01/02/2017 - 13:49

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Minerals explorer TNG has finally lodged a prospectus for the demerger of its base metals portfolio into a spin-out company, while Heron Resources and Force Commodities have both progressed their respective demergers.

Lithium-focused Marquee Resources hopes to begin trading on the ASX by March.

Minerals explorer TNG has finally lodged a prospectus for the demerger of its base metals portfolio into a spin-out company, while Heron Resources and Force Commodities have both progressed their respective demergers.

Perth-based TNG told the market today it had lodged its prospectus for the initial public offering of its Todd River Resources subsidiary, which will be spun-out of the company and hold ownership of TNG’s base metals assets in the Northern Territory.

Plans to spin-out Todd River were announced in July last year. However, it is TNG’s second attempt to do so, with the company cancelling plans to demerge the subsidiary in 2015 despite receiving shareholder approval.

Todd River plans to raise up to $6 million through the placement of 30 million shares at 20 cents each.

If successful, it hopes to be listed on the ASX by late March, with ownership of 12 exploration projects in the NT including the Manbarrum zinc project.

It follows news last week that Heron’s spin-out company, Ardea Resources, had successfully closed its IPO offer after having raised $5.2 million from investors at an issue price of 20 cents each.

It had set $6 million as its maximum target.

Ardea will take ownership of Heron’s non-core assets including the Lewis Ponds gold-zinc project in NSW, and several gold and nickel projects located in the Goldfields.

Meanwhile Marquee Resources, the lithium-focused spin-out company of Force Commodities (formerly known as Sovereign Gold Company), has released its prospectus for an IPO, hoping to raise $3.5 million from investors through the issue of 17.5 million shares at 20 cents each.

Marquee hopes to begin trading on the ASX by March, with its primary asset being Force’s non-core Clayton Valley lithium project in Nevada.

Force, which will retain a 9.4 per cent stake in the demerged company, has also recently named the proposed board structure of Marquee including former Kagara Zinc, Apex Minerals and LionOre Mining executive Mark Ashley as non-executive chairman, along with Equator Resources and Orca Energy director Jason Bontempo as a non executive director.

Force chairman Charles Thomas will also sit on the board of the new company as a non-executive director.

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