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Australian Mines secures $5 million for IPO spin-out

$4 million of the planned $6.6 million of IPO funding has been committed.
word IPO in front of share price graph and man in suit
Upon successful IPO, AUZ will own 28.6% of the new company

Australian Mines Ltd (ASX:AUZ) is making solid progress in spinning out non-core gold and base metals assets in Western Australia into a new entity for an initial public offering (IPO).

The assets have been transferred to Norwest Gold Pty Ltd, which intends to raise $6.6 million in an IPO by the end of October 2018.

Pre-IPO seed funding of $1 million has been secured and a further $4 million has been committed through cornerstone investor agreements for the IPO.

Establishing Norwest best way to extract asset’s value

Australian Mines’ managing director Benjamin Bell said: “I am confident the decision to establish Norwest as a separate, independently-managed and focused public company is the best path forward for achieving true market value for our highly prospective gold and base metal exploration projects in Western Australia, and I am pleased to be providing priority exposure to this investment opportunity for our existing shareholders.

“Australian Mines’ shareholders will continue to benefit from exploration success of Norwest through the significant equity stake that the parent Company will continue to hold in the new entity, and I look forward to seeing the future results from more focused exploration across the Norwest asset portfolio.”

Experienced corporate geologist at the helm

Experienced resources executive, Charles Schaus has been appointed as CEO of Norwest and will lead the IPO process and subsequent ASX listing.

Schaus founded Aurox Resources which was part of a $143 million merger with Atlas Iron Ltd (ASX:AGO) in 2010.

READ: Australian Mines to export largest sample of battery-grade cobalt and nickel sulphate

Assuming a successful IPO, Norwest has allocated nearly $3.5 million to aggressively explore its Western Australian asset portfolio.

Drilling will commence immediately following ASX listing with the budget providing for more than 16,500 metres of reverse circulation (RC), air core and diamond drilling in the first year.

This includes the walk-up gold and base metals targets at Warriedar and Marymia which will be drilled prior to the end of this calendar year.

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