- Hawkstone Mining (HWK) is set to spin-out its gold and gold-copper projects in the U.S. into a separate company called “Diablo Resources”
- Hawkstone is also looking to change its name to “Arizona Lithium” which reflects its strategy of focusing on its Big Sandy Lithium Project in Arizona
- The materials stock will divest and sell its interest to Diablo in the Devil’s Canyon project, Western Desert project and the Lone Pine project
- Hawkstone Mining will receive 40 million shares in Diablo which, when Diablo successfully lists on the ASX, will be distributed through an in-specie pro rata distribution to Hawkstone’s shareholders
- Diablo hopes to raise $6.5 million through the issue of 32.5 million shares at 20 cents per share and Hawkstone’s shareholders will have the right to participate in a $3.5 million priority offer in the ASX listing
- Company shares are up 25 per cent to trade at 3.5 cents
Hawkstone Mining (HWK) is set to spin-out its gold and gold-copper projects in the U.S. into a separately listed company called “Diablo Resources”.
This decision aligns with the company’s plan of focusing on the Big Sandy Lithium Project in Arizona. To reflect this, Hawkstone will also change its name to Arizona Lithium.
As part of the spin-out, the materials stock will divest and sell its interest to Diablo in the Devil’s Canyon Gold-Copper Project in Nevada, Western Desert Gold-Copper Project in Utah and the Lone Pine Gold Project in Idaho.
“With the recent shift in market sentiment to battery minerals, we feel that Hawkstone shareholders will gain maximum value from the company’s gold and gold-copper assets via Diablo Resources, as a separate ASX-listed entity,” Managing Director Paul Lloyd said.
“Located in world-class gold and copper regions, these projects hold significant potential and the spin-out will provide shareholders with a non-dilutive and ‘off balance sheet’ solution to accelerate exploration on these assets in a period of high gold and copper prices,” he added.
Hawkstone Mining will receive 40 million shares in Diablo which, if and when Diablo successfully lists on the ASX, will be distributed through an in-specie pro rata distribution to Hawkstone’s existing shareholders.
However, the distribution of shares is subject to shareholder approval at a meeting to be held in July, Diablo’s initial public offering (IPO), and the new company receiving conditional approval to list on the ASX.
For the proposed IPO, Diablo hopes to raise $6.5 million through the issue of 32.5 million shares at 20 cents per share. Hawkstone’s shareholders will have the right to participate in a $3.5 million priority offer in the ASX listing.
Hawkstone Mining has completed extensive fieldwork activities across the three gold and copper projects which are now at the drill-ready stage. Once Diablo successfully lists, it will commence drilling at Devil’s Canyon, followed by the Western Desert Gold Project and the Lone Pine Gold project early next year.
Company shares are up 25 per cent to trade at 3.5 cents at 10:14 am AEST.