Gascoyne Resources and Firefly Resources have executed binding documentation to demerge their copper-gold and lithium exploration assets in Australia and bundle them into a new company to be owned 100% by the latter.

The two Australian gold developers have signed a demerger implementation deed in this regard to create Firetail Resources, which will be focused on exploration.

The assets to be owned by Firetail Resources are the Paterson Copper-Gold Project, the Forrestania Gold Project, and lithium mineral rights over various tenements held by both the companies.

Currently, the Paterson Copper-Gold Project and the Forrestania Gold Project are fully owned by Firefly Resources.

The move to create Firetail Resources follows the merger deal signed by Gascoyne Resources and Firefly Resources in June 2021.

The merger between the two firms will create a regional gold production and development business with assets in the Murchison region of Western Australia.

The combined company will retain the name Gascoyne Resources.

At the time of signing the merger deal, the parties agreed to demerge their copper-gold and lithium exploration assets in the Paterson, Murchison, and Forrestania regions of Western Australia.

The parties believe that the creation of new exploration driven, energy metals focused business will unlock further value for their respective shareholders.

Following the demerger, legacy shareholders of Firefly Resources and Gascoyne Resources will have stakes of 90.1% and 9.9%, respectively in the energy metals focused business.

The demerger is subject to approval by Firefly Resources’ shareholders.

Initially, Firetail Resources will be a publicly unlisted company and will pursue a listing on the Australian Securities Exchange (ASX) at a later date after the implementation of the merger between its parent firms.