Century Global Commodities Corp (TSX:CNT) said it is considering spinning out its flagship Joyce Lake iron ore project in Canada, marking a strategic move to secure additional funding for the venture.
The announcement came in the wake of robust first-quarter results for the company, bolstered by a thriving food sector.
In an interview, president and CEO Sandy Chim told Proactive that the Joyce Lake Project, one of Century Global’s prime undertakings, has been in development for over a decade.
He highlighted the project's evolution from discovery to feasibility study, now boasting impressive financial metrics, including a $185 million NPV after tax and a 20% IRR. The project is currently undergoing comprehensive environmental assessments and feedback from regulatory authorities, positioning it for the next stage of public consultation.
In a bid to fund the advancement of the project, the company said it is considering a separate stock exchange listing.
Chim explained the rationale behind this move, citing the company's strong balance sheet and the potential to attract investors to the standalone project entity.
“It makes the most sense for us, and the market and potential investors, to come in to invest in the most advanced flagship project of the company as a standalone single-project company,” Chim said.
The spin-out is projected to materialize by the end of the year or early 2024, contingent on market conditions.
Contact the author at stephen.gunnion@proactiveinvestors.com
