Metalicity has successfully wrapped up the sale of its Admiral Bay zinc project and Lennard Shelf zinc projects in Western Australia to upcoming Canadian-listed vehicle Kimberley Mining.
The ASX-listed company has now received $531,436 of a total of up to $13.28 million subject to completion of the initial public offering of Kimberley Mining and certain milestones.
The proposed IPO and TSX-V listing of Kimberley and associated sale of the Company’s zinc projects was approved by the company’s shareholders at a general meeting held in July.
Completion of the sale of our zinc projects and receipt of the first C$500,000 cash payment (of a total of up to C$12.5M cash payments) is an important milestone for the transaction,” Metalicity Managing Director Matt Gauci said.
“The successful seed capital raising is also a strong indication of demand from predominantly North American strategic, institutional and HNI investors for the planned IPO of KML which is expected to take place in the December Quarter 2018.”
Kimberley has also closed the first tranche of its C$2 million seed capital raising. The second and final tranche is expected to close within the next two weeks.
Funds raised under the Kimberley seed capital raising will be allocated towards funding the proposed IPO and TSXV listing of Kimberley.
Kimberley’s IPO prospectus is expected to be completed and lodged shortly with both companies to now focus efforts on listing Kimberley on the TSX-V which is expected to take place next quarter.
The company believes the spin-out of Admiral Bay will benefit its shareholders claiming it is fundamentally undervalued on the ASX with Enterprise Value Per Tonne (EV/T) of a peer group of base metals assets and companies (with ownership of Admiral Bay’s scale) listed on the TSX-V much higher than on the ASX.
Shares in Metalicity were last trading 0.1c or 7% higher at 1.5c on Tuesday.