Lefroy Exploration to Spin Out Nickel Asset

THE BOURSE WHISPERER: Lefroy Exploration (ASX: LEX) informed the market of its plans to demerger/IPO the company’s wholly-owned subsidiary Johnston Lakes Nickel (JLN).

Lefroy Exploration explained it is targeted listing of JLN in the first half of CY23 subject to shareholder and ASX approvals.

Johnston Lakes Nickel’s nickel assets consist of Carnilya South, within the Lefroy project, and Lake Johnston, both in areas of high nickel endowment near Kalgoorlie, and the Glenayle project, located 200 kilometres northeast of Wiluna.

The demerger has been inspired by recent positive investor sentiment within the nickel sector, motivating Lefroy to assess strategies to generate value recognition for its nickel assets, with a decision ultimately being made to undertake a demerger and IPO of JLN.

Lefroy said the demerger/IPO would allow it to focus on the company’s Lefroy gold project near Kalgoorlie, within which the key Burns target is currently being drilled out with eyes on a maiden Resource estimate in March 2023.

“We are progressing the demerger/IPO for JLN, with a target of completion during H1/23,” Lefroy Exploration non-executive chairman Gordon Galt said in the company’s ASX announcement.

“We have now appointed the Directors, including the Managing Director, so we have a first-class leadership team in place to explore our suite of first-class assets as soon as the demerger/IPO completes.

“This process will crystallise the inherent value in our nickel assets for LEX shareholders and will add to the existing value of our gold assets, which include the Burns project currently being drilled out for a maiden resource statement early in 2023.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Web: www.lefroyex.com