- Metals X (MLX) pens a share sale and subscription agreement with NICO Resources to spin out its Wingellina nickel-cobalt project in WA and Claude Hills project in SA
- Under the deal, the company will sell all shares in its Metal Exploration subsidiary to NICO, with Metals X shareholders to receive an in-specie distribution of NICO shares
- The company says ASX hopeful NICO is planning an initial public offering
- Among required approvals, Metals X is awaiting clearance by the Foreign Investment Review Board, which it anticipates by the end of November
- Shares in Metals X are up 4.05 per cent to 38.5 cents each
Metals X (MLX) has penned a formal share sale and subscription agreement (SSA) with NICO Resources for the sale and spin out of its nickel asset portfolio.
The portfolio includes both the Wingellina nickel-cobalt project in Western Australia and the Claude Hills project in South Australia.
Specifically, the SSA provides for the sale of all shares in Metal Exploration — a wholly owned subsidiary of Metals X — to NICO, under which eligible Metals X shareholders will receive an in-specie distribution of NICO shares, subject to approvals.
Metals X said the goal, therein, was to spin out its nickel assets and conduct an initial public offering of NICO shares.
Among the transaction’s conditions precedent is the granting of any necessary approvals by the Foreign Investment Review Board (FIRB), which is expected to make a decision on the matter this month.
The in-specie distribution and capital reduction under the transaction are also subject to shareholder approval, with a general meeting proposed to be held in mid-December.
Metals X Executive Director Brett Smith commented on the pending deal.
“The execution of the formal share sale agreement and progress of the sale and spin-out of the company’s nickel assets edges Metals X shareholders closer to securing a direct holding in a listed vehicle with the nickel assets as its cornerstone,” he said.
“Metals X shareholders [will] simultaneously remain part of a listed company that will focus on the production and development of its tin portfolio.”
The company said further updates and details of the spin out, including NICO’s anticipated ASX listing date, would be provided in the near term.
Following the announcement, shares in Metals X were trading 4.05 per cent higher at 38.5 cents each at 11:45 am AEDT.