Company Merger Results in Project Spinout

THE BOURSE WHISPERER: With the ink barely dry on their recent merger agreement, Gascoyne Resources (ASX: GCY) and Firefly Resources (ASX: FFR) are set to spin out project from their combined portfolio into a new entity.

The two companies announced a binding Demerger Implementation Deed (DID), under which they have agreed the terms of a demerger of various assets.

These include the Paterson copper-gold project, the Forrestania gold project, and lithium mineral rights over various tenements held by both Gascoyne and Firefly, all of which are to be acquired by a newly incorporated wholly owned subsidiary of Firefly, Firetail Resources Limited.

Firetail will initially be a publicly unlisted company with an intention to seek an ASX listing sometime following implementation of the merger.

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