The demerger will enable GBR to focus on its flagship high-grade Side Well Gold Project, along with the shallow, large-scale Whiteheads Gold Project.
Both projects have returned strong results and created shareholder value over the past 12 months.
The demerger is expected to provide shareholders and GBR with even greater value as they retain upside exposure to Yamarna through a 41% to 50% cornerstone equity holding in Cosmo Metals (implied value of $5 million at $0.20 IPO price).
Independent entity with battery metals focus
The decision to demerge Yamarna was a highly strategic one with shareholders in mind.
“Through a strategic review, where the board considered a wide range of options, we concluded the most value accretive option for our shareholders would be to establish an independent entity with a dedicated team of experienced professionals to advance the Yamarna Project to its full potential, whilst allowing Great Boulder to focus on its core assets at Side Well and Whiteheads,” Great Boulder’s managing director Andrew Paterson said.
“The transaction also enables Great Boulder and our shareholders to participate in the upside potential of the Yamarna Project with GBR retaining circa 50% of the new entity and by providing a priority offering in the new entity to existing shareholders.”
Paterson will work with Cosmo in a non-executive director capacity, but will primarily focus on developing Great Boulder’s highly prospective gold assets.
Under the proposed demerger Cosmo will acquire 100% of the Yamarna tenements from Great Boulder in consideration for the issue of 25 million fully paid ordinary Cosmo shares at a deemed issue price of $0.20.
Under the Initial Public Offering (IPO), Cosmo will raise:
- At least $5 million by the issue of 25 million fully paid Cosmo shares to the public at $0.20 per Cosmo share (minimum subscription); and
- A maximum of $7 million by the issue of 35,000,000 fully Cosmo shares to the public $0.20 per Cosmo share (maximum subscription)
GBR will retain a 50% direct interest in Cosmo at minimum subscription to the IPO and a 41.7% direct interest in Cosmo at maximum subscription to the IPO.
Eligible Great Boulder shareholders will receive a priority offer entitlement to participate in the IPO and will be asked to approve the demerger at the Annual General Meeting, expected to be held on or around late October/early November 2021.
Andrew Paterson and former Gold Road founder/ executive director Ziggy Lubieniecki have been appointed as non-executive directors of Cosmo Metals, with the board and management team to remain independent.
Several high-quality candidates have already been identified.
Yamarna is 130 kilometres northeast of Laverton in the Eastern Goldfields District of Western Australia and is a multi-commodity project with significant potential for magmatic copper-nickel-cobalt-PGE mineralisation.
The project consists of nine exploration licences and two prospecting leases, with all tenements granted except for one exploration licence and one prospecting licence.
Two separate areas make up the Yamarna Project: Winchester to the north (two exploration licences); and Yamarna to the southeast (seven exploration licences and two prospecting leases).
The Winchester Project hosts known copper-nickel mineralisation open along strike and at depth.
Historical drilling highlights include:
- 7 metres at 1.1% copper, 0.2% nickel, 0.01% cobalt, 0.19 g/t gold and 0.13 g/t PGE from 120 metres, including 2 metres at 1.8% copper, 0.2% nickel, 0.02% cobalt, 0.25 g/t gold and 0.22 g/t PGE; and
- 13 metres at 0.9% copper, 0.3% nickel and 0.02% cobalt from 138 metres, including 5 metres at 1.1% copper, 0.7% nickel, 0.04% cobalt and 0.10 g/t PGE.
Yamarna lies immediately west of the +6.2-million-ounce Gruyere Gold Mine owned by Gold Road Resources Ltd (ASX:GOR) and Gold Fields Ltd and is the more advanced exploration project. It includes the Mt Venn and Eastern Mafic copper-nickel-cobalt discoveries.
Historical drilling at Mt Venn intersected broad lenses of shallow copper-nickel-cobalt sulphide mineralisation including standout intersections:
- 48 metres at 0.8% copper, 0.2% nickel and 0.07% cobalt from 103 metres, including 3 metres at 1.3% copper from 105 metres and 6 metres at 0.7% copper, 0.3% nickel and 0.10% cobalt from 144 metres;
- 61 metres at 0.5% copper, 0.1% nickel and 0.05% cobalt from 86 metres;
- 18 metres at 0.8% copper, 0.1% nickel and 0.02% coibalt from 187 metres, including 2 metres at 3.0% copper from 190 metres;
- 4.4 metres at 1.7% copper from 142.4 metres; and
- 4.0 metres at 1.3% copper, 0.7% nickel and 0.06% cobalt from 33 metres.
There are also known gold, chromite, vanadium and uranium occurrences within the Yamarna region.