Jindalee Resources Ltd (ASX:JRL) is proceeding with the spin-out of its 100%-owned Australian assets, including critical mineral and gold projects, into a new listed vehicle, Dynamic Metals Limited.
The spin-out into a dedicated critical mineral-focused exploration vehicle will allow Jindalee to focus on its flagship McDermitt Lithium Project in the United States.
It will also provide an opportunity for investors to gain increased exposure to the company’s earlier-stage lithium, nickel and gold exploration projects in Western Australia.
WA portfolio
Dynamic Metals' portfolio will include Jindalee’s extensive landholding in the Widgiemooltha district and the Lake Percy Project, both of which are highly prospective for lithium, nickel and gold.
The portfolio will also include the recently acquired Deep Well Nickel-Copper-PGE Project, in which Dynamic will hold an 80% interest post-listing.
IPO plans
Dynamic Metals proposes to undertake an IPO to raise a minimum of $5 million and up to $7 million at an issue price of $0.20 per share.
The proposed IPO will include a priority offer to eligible Jindalee shareholders of up to $2.5 million of IPO shares as well as a public offer to new investors.
Upside exposure
Jindalee will retain upside exposure through a 25.5% to 32.1% cornerstone equity holding in Dynamic Metals which will have an implied value of $2.5 million at the $0.20 IPO price.
Canaccord Genuity (TSX:CF, LSE:CF) Australia Pty Ltd and Discovery Capital Partners Pty Ltd have been appointed joint lead managers to the IPO.
A prospectus for the IPO will be lodged in the coming weeks.
Jindalee will seek shareholder approval for the disposal of the Australian assets to Dynamic Metals at its upcoming Annual General Meeting.