The transaction will enable the company to focus on developing its flagship iron ore projects located at Lake Giles in Australia
Macarthur Minerals to bundle its non-iron ore Pilbara assets into Infinity Mining. (Credit: aymane jdidi from Pixabay)
Macarthur Minerals has disclosed plans to spin-out its non-iron ore assets in the Pilbara region in Western Australia into Infinity Mining in a move to sharpen its focus on iron ore delivery.
Infinity Mining was previously known as Macarthur Australia, a fully-owned subsidiary of the company.
Currently, the non-core gold/copper/lithium tenements of Macarthur Minerals are held through Infinity Mining’s subsidiary – Macarthur Lithium.
The assets that will be separated by Macarthur Minerals include the Hillside Gold and Copper Project, the Panorama Gold Project, and the Tambourah Lithium Project, which are all yet to be developed.
Covering an area of 400km2, the Hillside project includes four tenements and is located approximately 185km south-east of Port Hedland.
The Panorama project consist of three tenements covering 250km2 and is prospective for lithium and gold hosted within conglomerate.
Macarthur Minerals said that it plans to undertake an initial public offering (IPO) of Infinity Mining and pursue its listing on the Australian Securities Exchange (ASX).
Macarthur Minerals managing director Joe Phillips said: “Macarthur’s board has carefully considered all available options and we believe the value of the Pilbara gold/copper/lithium assets is not reflected in the current share price of Macarthur and see this as a way to create additional value for shareholders via a priority IPO spin off to be listed on the ASX.
“The addition of the Central Goldfields Assets into the portfolio will provide the new company access to potential surface gold historically identified that may be Toll treated through regional gold mines.
“The new vehicle will evaluate opportunities outside of the iron ore space, and will ensure that Macarthur retains its primary focus on the Lake Giles Iron Project.”
Post-listing, Macarthur Minerals Macarthur will continue to hold a material shareholding in Infinity Mining.
According to the Australian miner, its strategy will expedite further exploration and the future development potential of the non-iron ore assets. Besides, it will enable the company to focus on developing its flagship iron ore projects located at Lake Giles in the Yilgarn region of Western Australia.
Infinity Mining also has an exclusive right to take up due diligence on 10 historic gold/copper tenements in the Leonora area in the Central Goldfields region of Western Australia. The historic tenements are owned by Zanil.
Based on satisfactory completion of due diligence, the Central Goldfields assets are planned to be sold to Infinity Mining after its listing on the ASX.