PERTH (miningweekly.com) – ASX-listed Magmatic Resources on Friday announced the demerger of its wholly owned subsidiary Australian Gold and Copper (AGC), which will hold the Moorefield gold project, in New South Wales.
Furthermore, AGC has also entered into a binding term sheet with New South Resources to acquire two Central Lachlan gold/polymetallic projects from the privately-held company.
Following the acquisition, AGC will be listed on the Australian Stock Exchange, with New South Resources receiving a 40% interest in AGC prior to its initial public offering.
New South Resources CEO Glen Diemar will be appointed as MD of AGC following the acquisition, while Magmatic executive chairperson David Richardson will be appointed as a nonexecutive director to the AGC board. An independent nonexecutive chairperson will also be appointed, while Magmatic would have the right to appoint another director.
Magmatic told shareholders on Friday that the combination of the Moorefield gold project with the projects from New South Resources provided multiple drill ready discovery opportunities, while the demerger of Moorefield would allow Magmatic to focus on its East Lachlan gold and gold/copper porphyry projects.
The demerger of the Moorefield asset and the acquisition of the New South Resources tenements were subject to shareholder approval, and a satisfactory ruling from the Australian Taxation Office regarding tax implication of an in-specie distribution for Magmatic shareholders, as well as the necessary regulatory approvals.