The company plans to spin out its Record Mine Project, Silver Swan South Project, Red Gate Project and Middle Creek Project through its wholly-owned Australian subsidiary, Codrus.
These projects are in the Goldfields and Pilbara regions of Western Australia.
It is intended that Codrus will undertake an IPO and seek a listing on the Australian Securities Exchange (ASX).
Focused on driving value
Managing director Scott Williamson said: “The Codrus spin-out will see a dedicated management team focused on driving value into Blackstone’s non-core assets.
“Codrus will provide an excellent platform and catalyst for both growth and monetisation of these assets.
“The proposed transaction also better positions Blackstone to focus on the development of the Ta Khoa Project.”
Highlights of the transaction include:
- Blackstone’s primary focus on the flagship Ta Khoa Nickel-Copper-PGE project in Vietnam, and follows an ongoing strategy to provide additional benefit to Blackstone shareholders through maximising value from the company’s non-core assets;
- The company determined a spin out of the projects into Codrus as optimal compared to an asset level divestment, on the basis that it enables the transfer of Blackstone’s knowledge of the projects and ensures exposure to exploration upside is retained for Blackstone shareholders;
- Blackstone to retain approximately 50% of the equity in Codrus upon successful completion of the IPO; and
- Blackstone shareholders will be offered a priority allocation in the Codrus IPO pursuant to the forthcoming prospectus.
- Codrus intends to undertake an IPO of its securities in Q2 of 2021 to facilitate admission to the Official List of the ASX; and
- It is currently anticipated that the prospectus to be lodged by Codrus in relation to the IPO will seek to raise a minimum $5 million.