Neometals is edging closer to demerging its significant Mt Edwards nickel sulphide project near Kambalda in Western Australia into a new company, Widgie Nickel, which is targeting a September listing on the ASX. Existing Neometals shareholders are set to get a free piece of Widgie proportionate to their current shareholdings. A new board of directors has now been appointed for the nickel company.
The wholly-owned Mt Edwards project covers more than 300 square kilometres of tenure and takes in some 50km of strike over and around the prolific Widgiemooltha Dome structure that hosts several current and historical nickel mines.
The Mt Edwards resource base consists of 11 deposits stretching along some 15km of strike along the Widgiemooltha Dome, with total resources clocking in at an impressive 10.22 million tonnes at 1.6 per cent nickel for a hefty 162,560 tonnes of contained nickel.
Management believes the nickel sulphide resources and exploration potential at Mt Edwards deserve the sole focus of a new exploration and development company.
Under the proposed demerger Neometals plans to distribute 100 per cent of Widgie shares to its current shareholders.
Eligible Neometals shareholders will receive one ordinary share in Widgie Nickel for every 4.218 shares they hold in Neometals as at 26th August 2021.
Once the demerger is complete, Widgie shareholders will be eligible to partake in a $24m entitlement offer where they will have the right to acquire new shares in the company at 20c per share on a one-for-0.923 basis.
A total of 120 million Widgie shares are being offered in the capital raising, with the company set to have 250 million shares upon listing on the ASX.
Widgie is projected to start trading on the ASX on September 22 with an indicative market cap of $50m.
Neometals’ Managing Director Chris Reed said: “The demerger and return of our Mt Edwards asset offers existing Neometals shareholders the opportunity to realise the inherent long-term value of this exciting development story in a discrete, nickel-focused vehicle. I am particularly pleased to have secured a team of highly skilled resource professionals with diverse expertise to oversee Widgie Nickel’s future and support the focused exploration and development of the Mt Edwards project.”
Widgie is set to be spearheaded by Managing Director Steve Norregaard who has more than 25 years of experience in executive and operational roles in the resource industry in Australia, Canada and South-East Asia. His professional background takes in open-cut and underground mining, including nickel.
Recently Mr Norregaard was Director of Operations for ASX-listed Westgold Resources and previously held Managing Director roles for listed resource companies.
Widgie Nickel’s incoming Managing Director Steve Norregaard said: “Widgie Nickel presents investors with a compelling opportunity to gain exposure to an exciting nickel-focused development story. With a material resource inventory and a commanding landholding over the prolific Widgiemooltha dome, strategically located next to major infrastructure, we are well placed to start an exciting independent journey.”
Mt Norregaard is joined on the board by independent non-executive directors and a chief financial officer with professional and corporate backgrounds including law, corporate advisory, geology, resource development, engineering, nickel mining, finance and accounting.
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