Planet Gas is quitting the oil and gas business and taking a stab at tin and tungsten instead.

The tiddler, which has a market value of roughly $2m, is acquiring Big Sky Metals which owns exploration land in New South Wales prospective for tin and tungsten.

The cost to Planet Gas is the issue of 70 million shares and 20 million options following a 10-for-1 share consolidation.

Planet Gas plans to raise $4.5m and rebrand as Sky Metals.

This shift into tin and tungsten followed news the company had stuck a deal to sell its subsidiary Planet Gas USA to High Peak Royalties for just $1.

Companies often offload assets at the measly sum of $1 if they owe more than the asset is worth in order to get a buyer to take on their debt.

In Planet Gas’ case it owed Macquarie Bank $US2.75m ($3.8m) — a debt High Peak has agreed to take on.

As an oil and gas play, the company’s share price over the past year hasn’t even made it to 1c, trading in a band of 0.3c to 0.7c.

Planet Gas (ASX:PGS) shares over the past year.
Planet Gas (ASX:PGS) shares over the past year.

Tin in particular has not been in the spotlight much, but there is renewed interest in the base metal.

It is primarily used as a solder component for electronic circuit boards and microchips — which accounts for about half of its global consumption.

Boston’s Massachusetts Institute of Technology forecasts that tin will edge out the favoured lithium and cobalt battery metals as the metal most likely to be impacted by new technology.

The technologies that are expected to impact tin demand include autonomous and electric vehicles, advanced robotics, renewable energy, and advanced computing and IT.

Research shows that the metal provides cheaper and improved capacity to many alternative battery designs.

Planet Gas has been suspended from the ASX until it completes the acquisition and re-complies with the bourse’s listing rules.

The company has been contacted for comment.