- Blackstone Minerals (BSX) is spinning out four WA-based gold projects into a new initial public offering (IPO), known as Codrus Minerals
- The spin-out of the Record Mine, Silver Swan South, Red Gate and Middle Creek projects allows Blackstone to focus on its Ta Khoa project in Vietnam
- Under the proposed transaction, Blackstone will retain around 50 per cent of the equity in Codrus once the IPO is successfully completed
- It’s believed the IPO will take place in the June quarter and Codrus will look to raise at least $5 million
- Company shares are up a slight 1.23 per cent and trading at 41 cents
Blackstone Minerals (BSX) is spinning out four WA-based gold projects into a new initial public offering (IPO), known as Codrus Minerals.
The soon-to-be company plans to undertake an IPO and list on the ASX.
At this stage, Blackstone will spin out its Record Mine, Silver Swan South, Red Gate and Middle Creek projects through its wholly-owned Australian subsidiary, Codrus Minerals.
These four projects are all located in Western Australia and the spin-out aligns with Blackstone Minerals’ strategy of focusing on the development of its Ta Khoa Nickel-Copper-Platinum Group Element (PGE) Project in Vietnam.
“The Codrus spin out will see a dedicated management team focussed on driving value into Blackstone’s non-core assets,” Managing Director Scott Williamson said.
“The proposed transaction also better positions Blackstone to focus on the development of the Ta Khoa Project. Codrus will provide an excellent platform and catalyst for both growth and monetisation of these assets,” Scott added.
Blackstone believes the spin out of the projects into Codrus, rather than an asset level divestment, enables it to transfer its knowledge of the projects and ensures Blackstone’s shareholders retain exposure to exploration upside.
Under the proposed transaction, Blackstone will retain around 50 per cent of the equity in Codrus once the IPO is successfully completed. This is expected to take place in the second quarter and Codrus will look to raise at least $5 million.
Further, Blackstone’s shareholders will be offered priority allocation in the Codrus IPO pursuant to the upcoming prospectus.
Company shares are up a slight 1.23 per cent and trading at 41 cents at 10:57 am AEDT.