Medallion Metals Ltd (ASX:MM8) has completed the divestment of its nickel prospective tenure at Ravensthorpe to NickelSearch Ltd following the satisfaction of conditions precedent.
This includes NickelSearch receiving conditional approval for its shares to be admitted to the Official List of ASX.
NickelSearch shares are expected to commence trading on the ASX under the code NIS, subject to satisfaction of various conditions of quotation.
As well as gold and copper, Ravensthorpe contains a number of tenements prospective for nickel and those tenements will form the Carlingup Nickel Project, which will be NickelSearch’s flagship asset.
"Deliver significant value"
Medallion managing director Paul Bennett said: “The consolidation of a proven and highly prospective nickel terrain in a well-funded Western Australian nickel focused explorer is a great result and provides a tremendous opportunity to deliver significant value for Medallion and NickelSearch shareholders alike.
“This transaction sharpens Medallion’s focus on the high-grade gold and copper opportunity at the Ravensthorpe Gold Project, where the company is aiming to build project resources to 1.5 million ounces and beyond.”
NickelSearch IPO
The oversubscribed NickelSearch Initial Public Offer (IPO) raised $10 million at $0.20 per share.
Medallion has been issued with 15,713,662 NickelSearch shares as consideration for the nickel tenure divestment, which represents 15.1% of the total shares on issue at listing.
Medallion will give consideration to transferring ownership of the NickelSearch shares to Medallion shareholders via an in-specie distribution upon the conclusion of the 24-month escrow period imposed by ASX, subject to all necessary regulatory approvals.
NickelSearch board of directors
In accordance with the terms of the sale and purchase agreement, Medallion’s Bennett will serve as the company’s nominee non-executive director on the Board of Directors of NickelSearch until such time as Medallion’s shareholding in NickelSearch falls below 10%.