GWR Group Limited has unveiled plans to demerge and launch an initial public offering (IPO) of its wholly owned subsidiary, Western Gold Resources Limited, which holds the Wiluna West Gold Project.
GWR Chairman Mr Gary Lyons said a successful IPO would allow the company to continue to focus its efforts on its Wiluna West Iron Ore project, which continues to deliver revenue from its C4 Iron Ore deposit.
He said the demerger would create a new ASX-listed, gold-focussed Western Gold Resources, creating substantial value for company shareholders.
“With GWR’s Wiluna West Iron Ore now delivering revenue, we believe the time is right to take advantage of the buoyant Gold price and spin-out our highly prospective gold assets whilst rewarding our loyal shareholders with an in-specie distribution,” Mr Lyons said.
“We believe the Wiluna West Gold assets will attract better investor attention and valuation in a standalone entity, while GWR can focus on the development of its remaining assets.
“Given the quality of the Wiluna West Gold Project and the minimal work undertaken in recent years, we expect that Western Gold Resources Limited will attract the level of capital required to aggressively and systematically explore the (relatively under-explored) 22km of Joyners Find Greenstone Belt whilst also advancing the brownfields resource.
“We look forward to realising the true potential of our gold portfolio and will continue to update the market with the progress of the proposed Western Gold Resources Limited IPO and GWR’s Strategic Investments.”