Great Boulder Resources Ltd (ASX:GBR) shareholders have approved the demerger and IPO of its highly prospective Yamarna Copper-Nickel-Cobalt Project in the Eastern Goldfields of Western Australia.
The proposed demerger will establish a new ASX-listed base metals exploration company called Cosmo Metals Limited (proposed ASX code CMO), with its own highly experienced board and management team.
Great Boulder will begin exploration works and drilling at Yamarna in December 2021 to provide news flow for Cosmo Metals upon listing.
“Priority offering to shareholders”
Great Boulder managing director Andrew Paterson said: “We are pleased to confirm the details of the upcoming demerger and IPO of our highly prospective Yamarna Project.
“This will result in the establishment of a significant new, well-funded ASX listed explorer with a high-quality exploration portfolio spanning one of Australia’s most prospective metal provinces.
“This allows the Yamarna Project to progress under an independent budget and management team, while GBR concentrates on advancing the high-grade Side Well Gold Project.
“The transaction also enables Great Boulder and our shareholders to participate in the upside potential of the Yamarna Project with GBR retaining ~50% of the new entity and by providing a priority offering in the new entity to existing shareholders.”
Proposed demerger
Under the proposed demerger, Cosmo will acquire 100% of the Yamarna tenements from Great Boulder in consideration for the issue of 25 million fully paid ordinary Cosmo shares at a deemed issue price of 20 cents per share.
The IPO expects to raise a minimum of $5 million and maximum of $7 million by the issue of 25 million and 35 million shares respectively.
Great Boulder will retain 25 million Cosmo shares directly post-IPO, equating to a 50% direct interest in Cosmo at minimum subscription to the IPO and a 41.7% direct interest in Cosmo at maximum subscription to the IPO.
Eligible Great Boulder shareholders will have a priority offer entitlement of $4 million to participate in the IPO.
Discovery Capital and Cumulus Wealth have been appointed as joint lead managers to execute the Cosmo Metals IPO.
Cosmo Metals intends to lodge the IPO Prospectus before the end of November.
Board and senior management
Cosmo has secured a high-calibre and experienced team with a proven track record in making major discoveries and delivering exceptional returns to shareholders.
The company has chosen experienced mining industry executive and geologist Peter Bird in the position of non-executive chair.
In addition, veteran geologist and executive James Merrillees has been designated to the position of managing director.
Cosmo has also secured experienced geologist Ziggy Lubieniecki as a non-executive director. Notably, he is the founding director of Gold Road, and is credited for the discovery of the +6.2 million ounce Gruyere gold deposit in the Yamarna region.
Andrew Paterson, who is the managing director at Great Boulder Resources, will also be a non-executive director in the company.
“Highly-regarded explorationists”
Paterson adds: “I’d also like to formally welcome Peter, James and Ziggy to the Cosmo board.
“We are incredibly fortunate to have secured the services of these three highly-regarded explorationists and we are looking forward to their stewardship of what will be one of the most dynamic exploration companies on the ASX.
“Given their vast depth of expertise and capability – building on the strong foundations already created by Great Boulder – I am confident that Cosmo Metals will be incredibly well-placed for discovery success.
“I am very much looking forward to the demerger and IPO proceeding. I encourage shareholders to look out for the Prospectus and offer documentation and encourage shareholders to take advantage of the opportunity to participate in the upcoming priority offer.”