Metalicity’s disposal of its Admiral Bay, Napier Range and Emanuel Range zinc projects into upcoming Canadian-listed vehicle Kimberley Mining has today received backing from the company’s shareholders.
At a general meeting in Perth, all resolutions – including disposal of interest in its zinc projects – were passed via a poll conducted at the meeting.
The ASX-listed explorer (ASX: MCT) is vending its Admiral Bay, Napier Range and Emanuel Range zinc projects into Kimberley Mining which will net the company around A$33 million in cash and scrip.
Kimberley Mining is currently targeted and on track to list on the TSX-V in October 2018.
The deal- which is still subject to regulatory approval – will see Metalicity receive up to C$12.5 million cash and retain 25 million shares (~C$20 million) for the sale.
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.
Meanwhile, shareholders also voted for the issue of Kimberley Mining warrants to Metalicity board members, the election of Justin Barton as Director and issue of options to Mr Barton.
Shares in the stock were trading at 2.1c this afternoon.