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Metalicity Agrees to TSX-V IPO Terms for Admiral Bay

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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).”

 

Website: www.metalicity.com.au

 

Metalicity Seeking TSX-V Listing for Admiral Bay Project

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THE BOURSE WHISPERER: Metalicity (ASX: MCT) is chasing a TSX Venture Exchange-listing for the company’s Admiral Bay zinc project located in Western Australia.

Metalicity said the idea of listing Admiral Bay in Canada on the TSX Venture Exchange (TSX-V) had received endorsement from project stakeholders and some of the world’s largest mining investors including Resource Capital Funds (RCF) and China Minmetals.

“During the course of the previous six months the company has received numerous reverse enquiries from Canadian investment banks and fund managers concerning Admiral Bay, with the scale and quality of Admiral Bay being of particular interest,” Metalicity explained in its ASX announcement.

“Further, the relative value ascribed to the asset by ASX investors is very attractive to those investment banks and fund managers.

“While some of those market participants can invest on the ASX, and indeed a number of North American institutions corner-stoned the Company’s recent capital raising, far and away the majority of them predominantly focus on the North American markets, and have actively encouraged the Company to seek a listing of Admiral Bay on the TSX-V.”

Metalicity went on to say that the current strong market interest will allow the progression of Admiral Bay through a Preliminary Economic Assessment (PEA), its next round of resource and exploration drilling, followed by completion of a PreFeasibility Study (PFS), and ultimately into production.

The company said it held meetings with leading North American investment banks, stock brokers, research analysts and fund managers, during and after the PDAC Conference in early March, from which it had determined there to be plenty of North American market interest in Admiral Bay.

“The overwhelming view of these market participants was that the most attractive listing process and structure for MCT shareholders and new investors is an Initial Public Offering (IPO) of Admiral Bay onto the TSX-V,” the company said.

To conduct the listing, Metalicity will form a 100 per cent-owned subsidiary company in Vancouver, Canada, to be named Kimberley Mining Limited, into which, pending shareholder approval, it will effectively vend Admiral Bay.

Kimberley Mining would then undertake an IPO in Canada and seek a listing on the TSX-V concurrently with the completion of the offering.

 

Website: www.metalicity.com.au

 

Metalicity Set to Commence Yerrida Cobalt Project Drilling

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THE DRILL SERGEANT: Metalicity (ASX: MCT) reported recent activities at the company’s Yerrida cobalt project, located in the Yerrida Basin of Western Australia.

Metalicity said it has generated new targets at the project and that further field work and an approximate four-hole diamond and/or RC drilling program is set to commence at the project.

The company claims to have developed an exploration model for Yerrida with characteristics compatible to the geological setting of the prolific central African copper-cobalt belt.

Previous exploration undertaken by Metalicity demonstrated a geological setting considered amenable to hosting structural/stratigraphic-controlled copper-cobalt mineralisation and nickel-cobalt mineralisation.

Previous exploration by Metalicity at Yerrida identified a high priority target area over approximately seven square kilometres, which includes widespread surface geochemical anomalies including up to 6,400ppm cobalt and 1,500ppm cobalt, while drilling intersected primary stratigraphic controls on mineralisation or a halo to regional base metal transport over a 8 to 12m thick zone containing anomalous cobalt at the K1 target.

“Recent drilling intersected stratabound intervals of geochemically anomalous copper and cobalt mineralisation which are interpreted to indicate primary stratigraphic controls on mineralisation or a halo to regional base metal transport,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“A deeper hole is planned to test the potential for high-grade mineralisation associated with deeper structures from the underlying ‘red bed’ sandstones at K1, while a further three regional targets have been generated associated with an interpreted northwest-striking fault at K2-K4 for field work and drilling to test for leakage and cobalt mineralisation.”

 

Website: www.metalicity.com.au