Join our daily newsletter At The Bell to receive exclusive market insights
- Macarthur Minerals Limited (MIO) announces the opening of the subscription period for shares in its spin-off Infinity Mining’s initial public offering (IPO)
- Infinity is offering an opportunity for the public to subscribe for at least 35 million shares at an offer price of 20 cents per share to raise $7 million
- Under the prospectus, the opportunity for a maximum of 50 million shares at the same offer price to raise up to $10 million is also available
- Macarthur Minerals Managing Director Joe Phillips says post-listing, Macarthur will remain the major shareholder
- Shares in Macarthur Minerals are up 2.78 per cent to 37 cents
Macarthur Minerals (MIO) has announced that the offer to subscribe for shares in its spin-off Infinity Mining’s initial public offering (IPO) is open.
Under the prospectus, Infinity is offering an opportunity for the public to subscribe for a minimum of 35 million shares at an offer price of 20 cents per share to raise $7 million and a maximum of 50 million shares at the same offer price to raise up to $10 million.
The offer comes with one attaching unlisted option for every two shares subscribed for, with an exercise price of 30 cents each and an expiry date of 18 months from the date of issue.
As the largest stakeholder, Macarthur Australia, a subsidiary of Macarthur, will collaborate closely with Infinity to maximise shareholder value and develop assets.
“The timing to develop these assets is ideal and further diversifies Macarthur enhancing the opportunity to drive additional value to shareholders,” the company said in a statement.
Macarthur Minerals CEO Andrew Bruton said over the course of the last five years the company, through Infinity, had acquired a portfolio of base metal assets in the Pilbara region of Western Australia.
“With the company’s core focus now on the development of its Lake Giles iron project, a spinout of these projects allows Macarthur the opportunity to see these assets developed whilst maintaining a material shareholding. We believe this is a win-win for our shareholders,” he said.
Macarthur Minerals Managing Director Joe Phillips said post-listing, Macarthur will remain the major shareholder and will provide an “arms-length” shared service to Infinity on commercial terms.
“Infinity Mining has commenced building a separate technical and geological team to plan a very active campaign both in the Pilbara and the Central Goldfields over the course of the next several months,” he said.
Shares in Macarthur Minerals were up 2.78 per cent to 37 cents at 2:24 pm AEDT.
