OreCorp announces WA assets spin off

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ASX-listed gold developer OreCorp on Monday announced plans to demerge its Western Australian exploration assets.

The company has mining licences rationalized into four Project areas – YarriYundamindraPonton and Kalgoorlie.

The company was recently granted a Special Mining licence for the e Nyanzaga Gold Project (Nyanzaga) in Tanzania. The demerge is said to be a great opportunity for the company to be able to focus on its Tanzanian project, a gold development project with a resource of 3.07 million ounces at a high grade of 4.03g/t gold.

According to the official ASX Announcement, OreCorp will also complete a separate ASX listing of Soltice, its wholly owned subsidiary, which holds the company’s WA assets.

The company said it believes this is “the optimal way to unlock value for OreCorp shareholders by establishing two unique ASX listed entities with separate geographically focused management teams who are able to pursue independent strategies and growth opportunities.”

“With the grant of the SML for Nyanzaga, we believe the time is right to demerge our WA exploration assets and unlock latent value for our shareholders who will continue to participate in Solstice via a pro rata in-specie distribution. The demerger and IPO presents an exceptional opportunity to realise the inherent long-term value of these assets in a WA focussed corporate vehicle,” said OreCorp’s CEO & Managing Director, Matthew Yates.

“The Board and senior management of Solstice have an outstanding track record of exploration success in the goldfields of WA at Nimary-Jundee, Dalgaranga and Mertondale. We also believe Solstice will attract stronger investor attention and valuation in a standalone entity, while allowing OreCorp to maintain its focus on developing Nyanzaga.”

Image credit: https://orecorp.com.au/projects/tanzania/nyanzaga-project