- Neometals (NMT) intends to demerge its Mt Edwards Project into a dedicated nickel exploration and development vehicle — Widgie Nickel Limited
- Mt Edwards Project is estimated to host more than 162,000 tonnes of contained nickel across 11 individual deposits
- The formation — and subsequent listing — of Widgie Nickel will provide the human and financial resources needed to advance Mt Edwards
- Neometals will distribute all of the Widgie Nickel shares on issue to its shareholders, relative to their existing interests
- Neometals is up 4.17 per cent to $0.50 per share at 10:34 am AEST
Neometals (NMT) intends to demerge its Mt Edwards Project into a dedicated nickel exploration and development vehicle — Widgie Nickel Limited.
Centred around the small township of Widgiemooltha, roughly 90 kilometres south of Kalgoorlie in Western Australia, the Mt Edwards Project consists of 49 tenements and is estimated to host more than 162,000 tonnes of contained nickel across 11 individual deposits.
It sits within the Widgiemooltha Dome, which has been home to more than seven nickel mines — the newest being Mincor Resources’ flagship Cassini operation that recently began production.
As a result, Neometals said this morning that the best outcome for shareholders is the formation — and subsequent listing on the ASX — of a new, independent entity capable of devoting the technical, human and financial resources that the Mt Edwards Project requires.
“These assets are highly deserving of their own time and attention, and the recent metallurgical results from just one of the deposits that revealed high grade palladium reporting to concentrate demonstrates just some of what can be achieved with a dedicated focus,” Managing Director Chris Reed said.
“Widgie Nickel is strongly leveraged to both the world economic recovery and the electrification of transport which will drive increasing product demand from both the traditional steel and lithium battery sectors.”
Pending shareholder approval, Neometals will distribute all of the Widgie Nickel shares on issue to its shareholders, relative to their existing interests.
Widgie Nickel will then complete a capital raising via a pro rata entitlement offer, giving shareholders the opportunity to further invest.
A board and management team are currently being assembled to lead Widgie Nickel ahead of its proposed listing in the fourth quarter of 2021.
Neometals is up 4.17 per cent to $0.50 per share at 10:34 am AEST.