IMX Resources Ltd (ASX:IXR) plans to spin-out its graphite projects to its subsidiary Graphex Mining Limited which is aiming for an IPO and ASX listing.
As part of the restructuring plan, IMX’s Chilalo Graphite Project and other graphite assets will be transferred to Graphex, for a cash payment of $1 million and 16.454 million Graphex shares worth $4 million, which represents 82.27% of Graphex’s share capital.
The remaining pre-IPO shares of Graphex will be held by MMG Exploration Holdings Limited.
The objective of the transfer is for Graphex to raise capital via an IPO and take the Chilao Project into production. Chilao Project is believed to be one of the world’s best undeveloped graphite projects.
Existing shareholders of IMX who are expected to meet in April to approve the sale, will receive Graphex shares on a pro-rata basis.
The spin-out and pro-rata allocation can be executed only after receiving shareholder and regulatory approval, including a private ruling from the Australian Tax Office confirming that there will not be any adverse tax effects of pro-rate share allocation.
If the spin-out and pro-rata allocation of shares goes through, Graphex will seek to raise between $4.25 million to $7 million via its IPO, which will include a priority offer to existing IMX shareholders.
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