25/07/2016 - 10:04

TNG's demerger plans back on

25/07/2016 - 10:04

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Minerals explorer TNG has reignited plans to form a spin-out company by demerging its base metals portfolio through a subsidiary and floating it on the ASX.

TNG's demerger plans back on
TNG's subsidiary Todd River Resources will own the Manbarrum zinc project in the Northern Territory.

Minerals explorer TNG has reignited plans to form a spin-out company by demerging its base metals portfolio through a subsidiary and floating it on the ASX.

Perth-based TNG said today it would seek shareholder re-approval for the demerger of its portfolio of base metals assets in the Northern Territory through the spin-out of its subsidiary Todd River Resources.

TNG intends to undertake an initial public offer for Todd River and list the subsidiary on the ASX.

“In light of the improvement in market conditions for the junior resources and exploration sector seen this year, the company has decided to seek re-approval for the spin-off,” TNG said in a statement.

“Upon completion of the demerger, Todd River will have one of the largest base metal exploration footprints in the Northern Territory, with ownership of a number of advanced assets including the large Manbarrum zinc project.”

TNG deferred plans to demerge its base metals portfolio in November due to uncertainty in the market, after it was approved by shareholders last May.

“The proposed demerger is consistent with TNG’s core corporate focus, which is the development of its world-class Mount Peake vanadium-titanium-iron project in the Northern Territory,” it said.

“The board considers that the value of the NT base metal assets is not recognised in TNG’s share price and believes that the time has come to separate and transfer these quality projects into an independent company with specific commodity and management focus.”

TNG shares were unchanged at 12 cents each at 10am.

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