- Strickland Metals (STK) receives heritage clearance for drilling at its Iroquois project in Western Australia ahead of a demerger
- The clearance will enable drilling over both the project and a number of surrounding prospects, upon completion of an IPO of STK’s spin-out company, DemergerCo
- Both the Iroquois and Byrah Basin projects are proposed to be spun out, the process of which CEO Andrew Bray says is “well advanced”
- The proposal remains subject to approvals and, if received, STK expects the IPO to be complete in the current half-year
- Company shares are up 2.5 per cent trading at 4.1 cents at 2:40 pm AEDT
Strickland Metals (STK) has received heritage clearance for drilling at its Iroquois project in Western Australia ahead of a demerger.
The company revealed plans for a demerger of both its Iroquois and Byrah Basin projects in October 2022 after completing a strategic review, which determined spinning out the projects into a single entity would maximise value.
At the same time, STK completed a heritage survey over Iroquois and has since received clearance for a drilling program over the project and a number of surround prospects.
Strickland said the clearance would enable drilling to commence upon completion of an initial public offering of its spin-out company, DemergerCo.
In this vein, the company’s CEO Andrew Bray said work was “well advanced” on the proposed demerger.
“Drafting of the prospectus is well advanced, with the main outstanding lead time item being obtaining Demerger Relief from the Australian Taxation Office.
“It is expected the application for Demerger Relief will be lodged during the current quarter,” Mr Bray said.
Strickland plans to conduct a full in-specie distribution of the shares of DemergerCo, meaning all Strickland shareholders would receive pro-rata shares in the new company.
Existing shareholders would also receive priority allocations in the IPO capital raise.
The proposal remains subject to the company obtaining the necessary shareholder, ASX and regulatory approvals.
If approved, STK expects the IPO to be completed during the current half-year period.
Shares in STK were up 2.5 per cent trading at 4.1 cents at 2:40 pm AEDT.