Peel Mining Ltd (ASX:PEX) currently has two flagship assets, and the company is now moving towards unlocking value in the wholly-owned Apollo Hill Gold Project in Western Australia through an Initial Public Offer (IPO).
The proposed transaction will have Peel vending Apollo Hill into subsidiary Saturn Metals Limited, which would then IPO on the ASX.
As nominee, Apollo would receive 20 million shares as consideration for the Apollo Hill assets.
The plan for Saturn IPO would be to seek to raise up to $7 million through the issue of up to 35 million shares at $0.20.
Rob Tyson, managing director for Peel, commented:
"The Apollo Hill gold assets were originally acquired as the company’s flagship assets, however the discovery of the Mallee Bull copper deposit in the Cobar Basin effectively put Peel in the fortunate position of having two flagships.
"Over time, Peel’s attention has firmly fixed on the exciting potential of our landholding in Cobar.
"It is now time to unlock the inherent value in the wonderful Apollo Hill real estate by giving it a true life of its own."
A general meeting of shareholders will be held in October to approve the disposal of the assets.
Mallee Bull joint venture
The Mallee Bull project is a 50:50 Joint Venture with CBH Resources Limited (CBH).
A recent resource upgrade delivered a 65% increase in total contained copper equivalent tonnes and comprises 6.76 million tonnes at 1.8% copper, 31 g/t silver, 0.4 g/t gold, 0.6% lead and 0.6% zinc for a 2.6% copper equivalent.
The metal content is circa 119,000 tonnes of copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000 tonnes of lead and 38,000 tonnes of zinc for 175,000 tonnes of copper equivalent.