New World Resources Limited has announced intentions to pursue a demerger of its portfolio of cobalt assets in North America, subject to shareholder and other requisite approvals.
The Australia-based company told the ASX that the decision to demerge these assets follows a strategic review of its asset base in light of the ‘outstanding success’ of its ongoing resource and exploration drilling program at the Antler Copper Project in Arizona.
“The Board considers that, given the Company’s strategic focus on the potential redevelopment of the Antler Copper Project, the value of its cobalt assets is not currently reflected in New World’s share price and these assets now logically sit in a separately listed vehicle specifically focused on progressing their exploration and development,” New World said in a statement.
Since 2017 New World has held a 100% interest in two cobalt projects in the United States – the Colson Cobalt-Copper Project in Idaho and the Goodsprings Copper-Cobalt Project in Nevada.
Between 2017 and 2019 the Company focused on, and undertook extensive exploration programs at these projects, which defined drill-ready targets at both projects, with drill permits approved for the Colson Cobalt-Copper Project.
However, as the cobalt price declined, and as the Company increasingly focused on its Antler Copper and Tererro Copper-Gold Projects during recent years, no further exploration has been undertaken.