Peel Mining Ltd (ASX:PEX) aims to unlock the value of its Apollo Hill Gold Project in Western Australia through an IPO of subsidiary Saturn Metals Limited.
The IPO process is underway with a prospectus issued and Peel shareholders invited to participate in a priority offer.
Saturn Metals is seeking to raise a minimum of $4.5 million and up to $7 million of new equity capital at $0.20 per share.
Priority period for Peel shareholders
The priority offer period for Peel shareholders ends on 5 February 2018 with the public offer to open the following day, closing on 23 February.
Saturn Metal shares are expected to begin trading on the ASX on 15 March 2018.
Funds raised under the offer will be used to progress Saturn’s exploration activities at the Apollo Hill project.
Apollo Hill is circa 50 kilometres southeast of Leonora and comprises a tenements package of circa 1,000 square kilometres within the North-Eastern Goldfields.
READ: Peel Mining updates Apollo Hill gold resource ahead of proposed spin-off
It has a gold resource of 17.2 million tonnes at 0.9 g/t gold for 505,000 ounces.
Saturn aims to grow the resource base by targeting along strike potential where intersections of up to 5 metres at 25.9 g/t gold from 52 metres have been returned.
It also aims to increase the average grade of the existing resource base by targeting newly identified high grade plunging shoots and to test regional targets.
To achieve these goals Saturn is planning circa 20,000 metres of drilling this year.