TNG plans Enigma nickel demerger
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Subiaco-based mineral explorer TNG Ltd has announced plans to demerge its nickel arm Enigma Mining Ltd, and allow the company to seek listing on the Australian Stock Exchange.
TNG, formerly known as Tennant Creek Gold Ltd, plans to distribute Enigma shares to its current shareholder on a pro-rata basis prior to making its initial public offer.
The full text of a TNG announcement is pasted below
The Directors of TNG Limited ("TNG") are pleased to announce their current intention to demerge its wholly owned subsidiary Enigma Mining Ltd ("Enigma") with the strategic purpose of Enigma applying for listing in its own right on the Australian Securities Exchange ("ASX") via an Initial Public Offer ("IPO").
TNG has over a 4 year period returned value to shareholders either in the form of fully franked dividends (February 2004) or distributions of its security investment holdings in ASX listed Batavia Mining Ltd (July 2003 and June 2007), Thor Mining PLC (June 2007) and Western Desert Resources Ltd (September 2007). Over the past 4 years TNG has distributed in the region of $15 million of value to its shareholders.
Enigma Mining Ltd holds assets that are predominantly prospective for nickel including the 20% interest in the Cawse Extended Project; and 100% ownership of 2 granted tenements in the Northern Territory prospective for nickel known together as the Mount Peake Project. These assets will form the basis of the IPO listing.
It is the current intention of the Board to distribute shares in Enigma on a pro-rata basis to shareholders of TNG prior to IPO. Returning value to shareholders represents a cornerstone of the long term strategy of your Company to maximize shareholder value while operationally continuing to focus on the 100% owned Manbarrum Zinc Lead Silver Project in the Northern Territory of Australia.
The Company is currently seeking taxation and legal advice and, subject to successful completion of this process and receiving the required shareholder and regulatory approvals, would be aiming to bring the IPO to market early in 2008.