Join our daily newsletter At The Bell to receive exclusive market insights
- The board of Middle Island Resources (MDI) has decided to de-merge its wholly owned subsidiary, Barkly Operations (BOPL)
- The company also plans to conduct an IPO and list BOPL on the ASX as a separate entity
- The proposed demerger and ASX listing would help increase the value in the Barkly copper-gold project in the Northern Territory
- It would also allow Middle Island to focus on its core gold asset at the Sandstone Project in West Africa
- Middle Island Resources is up 8.89 per cent and trading at 24 cents per share
The Board of Middle Island Resources (MDI) has decided to demerge its wholly owned subsidiary, Barkly Operations (BOPL).
The company’s BOPL subsidiary is currently the holder of the Barkly copper-gold project in the Northern Territory. The Barkly Project contains 12 exploration licences and applications, which cover 4411 square kilometres.
Based on government research by Geoscience Australia and the Northern Territory Geological Survey, the project has tier one iron oxide-copper-gold (IOCG) targets. The IOCG potential extends along the East Tennant Ridge and is principally defined by magnetic, gravity and magneto-telluric anomalies.
In addition to demerging BOPL, Middle Island also plans to conduct an IPO and list BOPL on the ASX as a separate entity. This is partly because the company believes that its current market capitalisation does not reflect the proper value of the Barkly assets.
Middle Island expects that the proposed demerger, IPO and ASX listing would help increase the value in BOPL. Further, it would also allow Middle Island to focus on its core gold asset at the Sandstone Project in West Africa.
Middle Island’s Managing Director, Rick Yeates, commented on the company’s plans for the demerger and IPO of its Barkly assets.
“The demerger of BOPL will provide investors two opportunities to grow value; in Middle Island as a more advanced pure gold exploration and development company, and in BOPL as it commences greenfields exploration of an exciting new copper-gold province,” he said.
It’s expected that eligible shareholders of Middle Island will be entitled to receive free shares in BOPL in the same proportions at their respective holding in Middle Island. They may also have priority entitlement to apply for shares in the future BOPL IPO.
Middle Island Resources is up 8.89 per cent, trading at 24 cents per share at 11:46 am AEDT.
