The D’Aguilar Gold (ASX: DGR) IPO spin-off of subsidiary AusNiCo to DGR shareholders has resulted in an oversubscription with an allocation scale back process now having to be undertaken due to the strong demand for AusNiCo stock.
D’Aguilar will retain 58.85 million shares and an 18 million option interest in AusNiCo, with the options exercisable at $0.30 by 19 November 2013.
AusNiCo offers exposure to nickel, gold, silver, copper, cobalt and platinum group metals through an extensive package of tenements, in an area of continuing industrial growth and established infrastructure.
The company will be helmed by John Downie as CEO and Stephen Roberts as a non executive director, both hail from strong backgrounds in nickel resource development companies.
AusNiCo will focus on the continued exploration and development of its nickel sulphide discovery at Pembroke and Mt Cobalt, which has already returned an exploration drilling result of 50m @ 0.34% nickel, including 4m @ 1.1% nickel.
The style of mineralisation is based on the Avebury deposit in Tasmania, owned by Allegiance Mining prior to its $840m take-over by Zinifex in 2008.
At Avebury, 172,000 tonnes of contained nickel was defined, and later developed, at grades of approximately 1% nickel and concentrates containing more than 20% nickel were produced.
The allotment if AusNiCo shares will be on Friday 15 October, with the dispatch of holding statement of Tuesday 19 October, with the anticipated trading debut n the ASX on Thursday 21 October.