American Tungsten & Antimony Ltd (ASX: AT4), an Australian-based company focused on the exploration and development of tungsten and antimony projects, has announced its intention to spin out its Drummond Basin and NSW assets into a new, standalone ASX-listed exploration company. The new entity, to be named King Metals Limited, will focus on gold exploration. This plan is subject to shareholder and ASX approval. The proposed listing aims to unlock the value of the Drummond Basin and NSW exploration assets for ATAA shareholders, separating them from the company’s primary focus on its US assets.
King Metals will be led by a highly qualified board and management team, including ATAA Chairman Timothy Morrison as Non-Executive Chairman, Chris Piggott as Non-Executive Director, and Nicholas Katris as Executive Finance Director. The board will immediately begin the search for a CEO to drive exploration programs across the assets. As part of the IPO, King intends to raise between $4.5 million and $6 million (before costs) at an issue price of $0.20 per King Share. Eligible ATAA shareholders will be entitled to participate in a priority offer.
According to American Tungsten & Antimony Ltd Managing Director Andre Booyzen, this move will offer shareholders exposure to the prospect of a discovery at Drummond Basin. He stated that establishing a dedicated and focused vehicle for the Drummond and NSW assets is important due to the company’s focus on developing its US assets. Listing the Drummond asset in a compelling gold price environment allows the board to attract a dedicated team to focus on unlocking value at Drummond.
The company is planning to release an indicative timetable for the demerger and IPO in due course, with further details to be provided in the notice of meeting and short-form prospectus to be lodged with ASIC and ASX.
