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Archer Exploration to list non-graphite assets by way of IPO
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Graphite explorer Archer Exploration is set to list its non-graphite exploration assets on the ASX.
Following an over-arching strategic review of the company that began in April this year, Archer has decided that an independent ownership model of its non-core assets would provide greater shareholder value.
Archer will now pursue an Initial Public Offering (IPO) of the non-graphite mineral exploration business on the Australian Securities Exchange by the end of calendar year 2018, subject to market conditions and shareholder approval.
To facilitate the IPO, Archer today entered into binding share sale agreements with Ballista Resources Ltd – a newly incorporated public company – for the sale of its subsidiary companies SA Exploration Pty Ltd (SAEx) and Archer Energy & Resources Pty Ltd (AER).
SAEx holds the tenements that form the Broken Hill Cobalt Project, North Burra Project and its WA Nickel Project. AER will be the holder of all of Archer’s Eyre Peninsula mineral exploration licences, with rights to explore for all minerals other than graphite on those tenements.
Ballista must list on the ASX for the share sale agreement to take place.
At completion, Archer will receive 48 million Ballista shares which are intended to be distributed to some or all of the Archer shareholders by way of an in-specie distribution. Distribution of these shares are subject to the receipt of favourable tax advice and regulatory and shareholder approval.
Of course AXE remains a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.
Once Ballista lists on the ASX, Archer will hold 48 million Ballista shares (prior to the intended in-specie distribution), the Campoona graphite mining lease and associated miscellaneous purposes licences.
Ballista will prepare a prospectus including offer of securities under the IPO and indicative timetable, with the company informing AXE that it expects to lodge its prospectus by the end of August, just a few weeks from now.
Successful completion will also hand Archer the rights Sugarloaf farm land and exclusive rights to explore for and mine graphite on the Eyre Peninsula tenements, the Carbon Allotropes online market place and all graphite and graphene related intellectual property.
Should the listing be successful, and following Archer’s recent sale of its Leigh Creek magnesia Project, the company should be in a position to focus on the growth and development of its Advanced materials business.
S734 Notice: Archer Exploration make reference to a potential future IPO concerning Ballista Resources within its latest ASX announcement. If the Ballista Resources IPO is undertaken, the relevant Prospectus will be made available when the securities are offered. Potential Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone wishing to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document.