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- Metals X (MLX) has agreed to sell its nickel assets to NICO Resources for around $9 million
- The parties have signed a binding term sheet and NICO will purchase the projects in an all-share deal
- Under the deal, NICO will undertake an initial public offering (IPO) of $8 million and apply to list on the ASX
- In the IPO, Metals X will receive around 20 million shares at 20 cents each
- Metals X will receive a further $5 million worth of shares and options
- Metals X is trading at 24.5 cents per share
Metals X (MLX) has agreed to sell its nickel assets to NICO Resources for around $9 million.
The nickel assets include Wingellina Nickel-Cobalt Project in Western Australia and the Claude Hills Project in South Australia.
The parties have signed a binding term sheet and NICO will purchase the projects in an all-share deal.
Under the deal, NICO will undertake an initial public offering (IPO) of $8 million and apply to list on the ASX. In the IPO, Metals X will receive around 20 million shares at 20 cents each.
Metals X will also receive a further $5 million worth of shares and options.
However, the sale is subject to a number of conditions that include a due diligence, Foreign Investment Review Board approval and shareholder approval.
Metals X then plans to conduct an in specie distribution of 25 million shares in NICO it receives as sale consideration to eligible Metals X shareholders, which is subject to the approval of Metals X shareholders.
“The sale and spin out of the Nickel Assets, allows Metals X shareholders to have a direct holding in a listed vehicle focussed on the Nickel Assets whilst also allowing Metals X to retain a substantial investment in the Nickel Assets in a newly listed vehicle,” Executive Director Brett Smith said.
Without its nickel assets, Metals X will focus on its tin portfolio.
“When combined with the company’s recent sale of its copper assets, the spin out of the nickel assets aligns with the company’s strategy of focussing on the development of its tin portfolio. MetalsX’s 50 per cent joint venture at the Renison Tin Operation in Tasmania remains the company’s primary focus,” Smith said.
Metals X is trading in the grey at 24.5 cents per share at 11:15 am AEST.
