Strickland’s proposed demerger of its non-core Iroquois zinc-lead and Bryah Basin projects into a new listed company to focus on its flagship Yandal gold project is proceeding apace.

The company added that work is well advanced on drafting of the prospectus with the application for Demerger Relief – the main outstanding lead time item – expected to be lodged with the Australian Taxation Office during the current quarter.

It has also received Heritage Clearance for Iroquois and a number of surrounding prospects, which will allow for significant drill programs to begin upon completion of the IPO of the DemergerCo that will hold the two projects in Western Australia.

The proposal to create a WA focused base metals exploration company is also subject to Strickland Metals (ASX:STK) securing the necessary shareholder, ASX and regulatory approvals.

“Work is also advanced on the composition of the proposed new Board and Management team,” chief executive officer Andrew Bray noted.

“As announced on 21 October 2022, Strickland plans to conduct a full in-specie distribution of the shares of DemergerCo.

“This means 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.”

The IPO is expected to be completed during the first half of 2023.

Demerger reasoning

Strickland has previously noted that spinning out Iroquois and Bryah Basin will unlock the strategic value of the assets for the benefit of all shareholders while allowing it to focus on developing Yandal.

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 is of especially interest given that work carried out to date has proved to the company that it warrants development as a “standalone ASX-listed base metals company”.

This includes an initial discovery hole that returned a 23m intercept grading 5.5% zinc+lead.



This article was developed in collaboration with Strickland Metals (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.