Great Boulder Resources Ltd (ASX:GBR) has lodged a prospectus with ASIC for the proposed demerger of its highly prospective Yamarna Project into a new ASX listed base metals exploration company called Cosmo Metals Ltd.
Cosmo Metals (proposed ASX code: CMO) will raise a minimum of $5 million and up to $7 million in new equity via an IPO and ASX listing.
As part of the transaction, Great Boulder will retain between 41% to 50% equity holding in Cosmo Metals through the receipt of 25 million shares, implying an equity value of $5 million at the proposed $0.20 IPO price.
Great Boulder shareholders registered on the record date, being November 26, 2021, will be eligible to participate in a priority offer to subscribe for Cosmo Metals shares under the IPO up to $4 million and for a minimum parcel of $2,000.
Indicative IPO timeline.
Great Boulder managing director Andrew Paterson said: “The demerger of the highly prospective Yamarna project is a win-win for the company and its shareholders, enabling Great Boulder to crystallise value from the non-core base metals assets, while ensuring management time and resources remain focused on our flagship Side Well and Whiteheads gold projects.
“I encourage investors to review the Prospectus and Offer documentation and encourage Great Boulder shareholders to take advantage of the opportunity to participate in the upcoming priority offer.
“The Great Boulder directors wish the Cosmo Metals team well for a successful IPO and listing in the near term.”
Cosmo Metals capital structure.
Cosmo Metals will be led by James Merrillees, a highly qualified geologist with over 20 years’ global experience in minerals exploration and development, as managing director.
He has held senior technical and corporate roles with ASX-listed and private gold and base metals explorers and developers.
Merrillees’ extensive experience covers the exploration of Archean and Proterozoic mineral systems and the management of teams involved in greenfields discoveries of gold, base metals, uranium and bulk commodities.
The board will be chaired by Peter Bird, an experienced and highly respected mining industry executive.
His extensive experience covers senior technical, management, investor relations and human resources positions with major mining companies such as Western Mining Corporation, Newmont and Normandy Mining.
In addition, Bird has extensive expertise in equity markets including five years at Merrill Lynch Equities, where he was recognised in 1998 as the top-rated Australian Gold Analyst in Australia, Europe and Asia.