IPO Watch: Magnetic spin out Aureole Resources to list with rare earths, nickel projects in WA
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Magnetic Resources will spin out its non-gold projects — mostly nickel and rare earths tenements around the Julimar area of WA — into a new IPO called Aureole Resources.
It allows MAU to wholly focus on its advanced, 511,000oz-and-growing Laverton gold assets, while simultaneously providing investors increased exposure to the MAU’s earlier-stage nickel and rare earth exploration projects in WA.
Aureole proposes to undertake an IPO to raise a minimum of $5m and up to $7m at an issue price of $0.20 per share.
The proposed IPO will include a priority offer to eligible Magnetic shareholders as well as a public offer to new investors.
Magnetic will seek shareholder approval for the spin-out of the nickel and rare earths to Aureole at an upcoming General Meeting to be held shortly.
Both rare earths and nickel are crucial new energy metals, with demand for both is expected to grow rapidly in the coming years.
According to the experts, we need ~10 new REE mines by 2030 to meet magnet rare earths demand, and 72 nickel mining projects with an average size of 42,500 tonnes by 2035.
Aureole’s proposed assets include 6 projects covering 523sqkm including Benjabbering, Goddard, Trayning, Trayning West, Korrelocking and Koorda.
All tenements are 90km to 150km northeast of Chalice Mines’ (ASX:CHN) company making Julimar Ni-Pd discovery.
All tenements were selected based on aeromagnetic interpretation, after noting the structural setting of the Julimar complex and the Gonneville mineralised discrete magnetic mineralised NiCu-PGE rich intrusion.
“We have decided to spin off these assets to allow for their development as stand-alone assets while we focus on the development of our gold assets,” MAU managing director George Sakalidis says.
“The nickel and rare earth assets have significant potential for a major discovery which Magnetic shareholders will continue to maintain exposure to through the large shareholding that Magnetic will continue to hold.”
Further details around the IPO will be available in the prospectus to be lodged by Aureole in the coming months.
This article was developed in collaboration with Magnetic Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.