PERTH (miningweekly.com) – Explorer Apollo Minerals on Tuesday announced that it would spin-off its iron-ore assets in Australia and Gabon into a newly listed vehicle, to fast-track the development of these assets.

Apollo had also signed a nonbinding term sheet with India’s Jindal Steel and Power, which would acquire a majority interest in the spin-off company by investing A$10-million as part of the initial public offering.

Apollo’s shareholders, in turn, would receive shares in the new company through an in-specie distribution that would result in the current shareholder register holding some 49% of the new company’s shares, as part of the demerger and after the Jindal investment.

The separate listing for the iron-ore assets would allow the market to evaluate and more accurately reflect the value of each asset class, which would also maximise shareholder returns, Apollo said, while separate listings for the iron-ore and base- and precious metals assets would also facilitate independent capital raisings to progress exploration and development of these assets.

“This is a transformational event for Apollo and one that will allow us to unlock maximum value for our shareholders,” said Apollo nonexecutive chairperson Tony Ho.

“The separation of our iron-ore and base-precious metals assets is an important part of this process. Apollo has achieved a great deal since getting access to our Commonwealth Hill iron and Titan base-precious metals project sites a little over one year ago,” he added.

Following the demerger, Apollo would remain fully focused on its base- and precious metals portfolio and on South and Western Australia.

Speaking on the relationship with Jindal, Ho said the company was pleased to have a partner of Jindal’s calibre, adding that the company believed it now had the key ingredients required to take its iron-ore projects from exploration to production in the shortest possible time.

Apollo currently holds iron-ore assets in Western Australia and Gabon.