Strickland plans Iroquois and Bryah spin out as standalone base metal explorer

Strickland Metals has announced its plans to spin out its Western Australian Earaheedy Basin Iroquois Project and Bryah Basin Project to deliver a standalone ASX base metal exploration company.

The Board believes the demerger process will unlock the strategic value of the assets for the benefit of all shareholders – and will allow Strickland Metals (ASX:STK) to focus on developing its flagship Yandal Gold Project.

The Iroquois zinc-lead project lies directly along strike from Rumble Resources’ (ASX:RTR) world-class Earaheedy project, and the Bryah Basin project comprises five early stage Exploration Licences covering 260 km2, in an area which hosts volcanogenic massive sulphide deposits (VMS) of copper and gold – including Sandfire Resources’ (ASX:SFR) DeGrussa operations.

Iroquois a standalone company opportunity

The Iroquois project has shown “tremendous potential for additional zinc-lead discoveries,” CEO Andrew Bray said.

“After the initial discovery hole at Iroquois (IQRC001: 23m at 5.5% zinc + lead) Strickland has steadily advanced Iroquois throughout 2022 via soil and rock-chip geochemical sampling and various geophysics surveys,” he said.

“This work has yielded several additional targets, with preparation now underway for a larger drilling campaign to commence in early 2023.

“The work completed to date has shown that Iroquois warrants development as a standalone ASX-listed base metals company.”

Bray says that, should the spin out proceed as proposed, Iroquois will be front-and-centre of the new company – which will allow much more dedicated and focused exploration programs.

“With the addition of the Bryah Basin project, the new company will also have a largely greenfield project in a highly prospective area to begin advancing,” he said.

Demerger targeted for Q1 2023

The projects will be held by a wholly owned subsidiary DemergerCo, which will seek to list on the ASX, with the company planning to undertake a full in-specie distribution of DemergerCo Shares to shareholders.

Strickland shareholders will receive DemergerCo shares (at no cost) on a pro-rata basis via a in- specie distribution, subject to any shareholder, ASX and regulatory approvals.

“By conducting a full in-specie distribution of the shares of DemergerCo, all Strickland shareholders at the record date, which will be determined by the board in due course, will receive pro-rata shares (at no cost) in the new company. Existing shareholders will also receive priority allocations in the IPO capital raise,” Bray said.

The demerger is targeted for the first quarter of 2023.

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This article was developed in collaboration with Strickland Metals Limited (ASX:STK), 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.