Metalicity Agrees to TSX-V IPO Terms for Admiral Bay

THE BOURSE WHISPERER: Metalicity (ASX:MCT) announced it has agreed to the terms for the sale and purchase of the company’s Admiral Bay, Napier Range and Emanual Range zinc projects.

Metalicity struck a deal with Kimberley Mining Limited, a company that recently announced an IPO on the Canadian TXV-Venture for the spin out of the Admiral Bay project.

Metalicity will receive approximately C$32.5 million in cash and shares, subject to shareholder and regulatory approval and completion of the IPO on the TSX-V.

Metalicity is to retain approximately 40 per cent of the expanded capital of Kimberley Mining post IPO and the targeted C$25 million capital raising which will be used to advance drilling and feasibility studies primarily on the Admiral Bay zinc project.

“The terms agreed are a win-win for both Metalicity and Kimberley Mining Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“Following Metalicity shareholder approval, Kimberley Mining will be well established to rapidly progress the IPO process which will best allow the progression of Admiral Bay in a market of higher valuations for base metals projects of Admiral Bay’s scale and in an increasingly tight zinc market.

“The agreed terms follow very strong market interest and engagement of leading North American mining investment firms, the appointment of a highly credible board, and endorsement of project stakeholders Resource Capital Funds (RCF) and China Minmetals (Minmetals).”