With significant support from the North American investment community, Metalicity (ASX: MCT) is looking to spin out its Admiral Bay zinc project in the Kimberley region of Western Australia into a new initial public offering on the Canadian TSX Venture Exchange.
A wholly owned subsidiary – to called Kimberley Mining – will be formed to include Admiral Bay and listed on the TSX-V via an IPO pending shareholder approval.
The new subsidiary will feature Toronto-based mining executives on the board, as well as three Metalicity directors, to advance the listing.
The ASX-listed explorer said it had received strong support for the listing from project stakeholders and some of the world’s largest mining investors including Resource Capital Funds and China Minmetals. China Minmetals previously inked an MoU for future zinc and lead offtake from Admiral Bay and project financing.
“Over the past six months, Metalicity received numerous reverse enquiries from Canadian investment banks and fund managers concerning Admiral Bay, with the scale and quality of Admiral Bay being of particular interest,” Metalicity said.
“Further, the relative value ascribed to the asset by ASX investors is very attractive to those investment banks and fund managers.”
The company is yet to finalise the amount of funds to be raised via the IPO and will update the market on its progress including timing, capital structure, senior management, and brokers for the TSV-V listing.
The listing of Admiral Bay will assist the project through a Preliminary Economic Assessment, its next round of resource and exploration drilling, followed by completion of a Pre-Feasibility Study leading into production.
Admiral Bay lies in the Canning Basin some 140km south of Broome in Western Australia’s Kimberley region and is regarded as one of the largest undeveloped zinc deposits in the world with an inferred mineral resource estimate of 170 million tonnes grading at 7.5% zinc equivalent including a high-grade zone of 20Mt at 10% zinc equivalent.
A scoping Study completed by SRK Consulting in July 2016 highlighted the project development was technically feasible using a base case Open Stoping mining method while flat lying deposit geometry and rock properties showed the project was potentially favourable for longwall mining.
In 2017, PFS Stage-1 study highlighted a highly capital efficient Direct Shipping Ore starter concept which was included in the development plan, utilising ore sorting technology to upgrade Run Of Mine ore to >25% zinc.