logo
powered-by-canningspurple
Navigation
logo powered-by-canningspurple
  • Insight
  • Companies
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • ChemX Materials
    • Core Lithium
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
  • About
  • Contact
  • Subscribe

Home / Copper / Rox Resources to demerge nickel and base metal assets

Rox Resources

  • ASX: RXL
    • Cu
    • Au

Rox Resources to demerge nickel and base metal assets

  • 31 March


Australian gold company, Rox Resources (ASX: RXL) today confirmed its intention to spin-out its Fisher East and Collurabbie nickel and base metal assets to focus on the development of the Youanmi gold project near Mt Magnet, WA.

HIGHLIGHTS:

  • Fisher East and Collurabbie nickel and base metal assets to be spun out (via a demerger) into a new company “Cannon Resources Limited”.

  • Eligible Rox shareholders to receive new Cannon Resources shares via an in-specie distribution, subject to Rox shareholder approval.

  • 1 for 15 consolidation of the equity securities in Rox to be completed prior to demerger, subject to Rox shareholder approval.

  • Rox shareholders are expected to receive 1 ordinary share in Cannon Resources Limited for every 4.3 shares (approximately) held in Rox on a post-consolidation basis.

The nickel and base metal assets will be demerged into a new company, Cannon Resources Limited (Cannon). The Company proposes a 1 for 15 share consolidation prior to the Cannon transaction to simplify its share structure.

Rox Resources Managing Director Alex Passmore commented:

“The demerger of Rox’s nickel and base metal assets will allow a crystal-clear focus for Rox to develop Youanmi into a high-grade producing mine, while allowing Rox investors to retain exposure to the nickel and base metal assets through a pro-rata holding in Cannon.”

Nickel Spin Out – Cannon Resources Limited

Rox holds substantial nickel assets via its Fisher East and Collurabbie Projects in Western Australia. These projects are also highly prospective for base metals. With the Company’s focus shifting to the advanced exploration and development of Youanmi, the Company has been seeking to unlock the value inherent within its nickel and base metal assets.

After careful consideration, Rox has determined that a demerger of these assets via an in-specie distribution to Rox shareholders offers the most efficient and direct delivery of value. Specifically, Rox intends to transfer the Fisher East and Collurabbie Projects into a newly formed subsidiary, Cannon Resources Limited, which will subsequently seek listing on the ASX in an initial public offering (IPO) following an equal capital reduction of Rox (Capital Reduction) to be affected by the in-specie, pro-rata distribution of 81% of Cannon’s issued capital to eligible Rox shareholders (In-specie Distribution). Rox shareholders are expected to receive 1 ordinary share in Cannon Resources Limited for every 4.3 shares (approximately) held in Rox on a post-consolidation basis.

The IPO will include a public offer to new investors and a priority offer to eligible existing Rox shareholders. Further details regarding the IPO will be provided in a prospectus to be lodged by Cannon for the IPO.

The Company has sought demerger relief advice from the Australian Tax Office (ATO) pursuant to Division 125 of the Income Tax Assessment Act 1997 (ITAA 1997) among other matters. The launch of the proposed demerger remains subject to Rox having completed satisfactory engagement with the ATO. There can be no assurance that demerger relief will be obtained.

View full announcement

Peter Kermode

  • Contact

Share

  • LinkedIn
  • Twitter
  • Facebook

Most Read

  • 1 November

Nickel, cobalt anomalies at Sockovac; large new gold, copper anomalies at Sinjakovo

  • ASX:LYK
    • Ni
    • Cu
  • 28 September

Core Lithium – Primero Group Awarded EPC Contract for Finniss DMS Plant

  • ASX: CXO
    • Li
    • Clean energy
  • Insight
  • 26 June

Picking winners – the portfolio approach that offers blue-sky potential

  • ASX: ARV
    • Clean energy
    • Cu

Related

  • 24 June

Gold Road to proceed with compulsory acquisition of DGO Gold

  • ASX: GOR
    • Au
  • 23 June

Exploration update – Visual copper in St George’s second Paterson hole

  • ASX: SGQ
    • Au
  • 22 June

Rox Resources shares exceptional results from grade control drilling at Youanmi’s Grace deposit

  • ASX: RXL
    • Au
  • Insight
  • 18 June

What market turbulence? Gold Road gets its prize, others kick goals

  • ASX: GOR
    • II
    • Broking Firm

NEWSLETTER

Get news, as it happens

Sign up to receive our weekly roundup, and releases of interest, as they happen.

  • This field is for validation purposes and should be left unchanged.
logo

Investor Insight, powered by Cannings Purple, delivers the stories that matter to the people who matter – across your preferred communications platform.

From breaking news to analysis, opportunities and thought leadership, Investor Insight is your window into some of Australia’s most exciting listed and non-listed companies.

  • Insight
  • Companies
    • Aeris Resources
    • Altrad
    • Argonaut
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • Buru Energy
    • Catalyst Metals
    • ChemX Materials
    • Core Lithium
    • DDH1 Drilling
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Torrens Mining
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
    • Westgold Resources
    • Zenith Minerals
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
powered-by-canningspurple
  • About
  • Contact
  • Subscribe
  • Cannings Purple
  • Privacy Policy
  • Disclaimer

Copyright 2022 Cannings Purple