Encounter Resources to Spinout West Tanami Gold Assets

THE BOURSE WHSIPERER: Encounter Resources (ASX: ENR) informed the market of its intention to demerge its wholly owned subsidiary, Hamelin Gold Limited.

As a result, Hamelin will hold the West Tanami gold project, on the back of which it will undertake an IPO and apply for listing on the ASX.

“With the rapid expansion of Encounter’s copper portfolio, including the major ground acquisitions in the NT and the recent farm-in agreement decision by BHP, we believe that the time is right to demerge our highly prospective West Tanami gold assets,” Encounter Resources managing director Will Robinson said in the company’s ASX announcement.

“Importantly, our shareholders will continue to participate in Hamelin via a pro rata in-specie distribution.

“Given the quality of the exploration opportunities within the West Tanami, Hamelin provides an attractive exposure for investors to the systematic modern exploration of this exciting and underexplored belt scale gold project.

“We also believe Hamelin will attract stronger investor attention and valuation in a standalone entity, while allowing Encounter to maintain its focus on its growing copper portfolio in the Paterson Province in WA, the Greater McArthur Superbasin in the NT and the West Arunta region of WA.”

 

 

Email: contact@enrl.com.au

 

Web: www.enrl.com.au