Peel to spin-out local gold asset

Junior explorer Peel Mining has announced plans to spin-off its Apollo Hill gold project near Leonora into a new company and list it on the ASX by way of an initial public offering.

Perth-based Peel will seek shareholder approval next month for the demerging of the subsidiary that holds ownership of Apollo Hill into a new company called Saturn Metals.

Peel, which also owns copper-gold deposits in NSW – which last year attracted a $3 million investment in the company by gold miner St Barbara - will retain a stake in Apollo Hill with Saturn to issue the company 20 million shares as part of the spin-out arrangement.

Saturn will then seek a listing on the ASX, and will undertake a $7 million capital raising through the placement of 35 million shares at 20 cents each.

“The Apollo Hill gold assets were originally acquired as the company’s flagship assets,” Peel managing director Rob Tyson said.

“However, the discovery of the Mallee Bull copper deposit in NSW’s Cobar Basin effectively put Peel in the fortunate position of having two flagships.

“Over time, Peel’s attention has firmly fixed on the exciting potential of our landholding in Cobar.

“It is now time to unlock the inherent value in the wonderful Apollo Hill real estate by giving it a true life of its own.”

Shares in Peel were 9 per cent higher to 24 cents each at 10:20am.