What has happened?
Blackstone Minerals Limited (BSX:ASX) announced that it is planning to spin out specific non-core gold assets into a new Codrus IPO, of which it will retain approximately 50% of the equity stake.
What are the key highlights?
- The new Codrus IPO could position Blackstone to optimise the value added to shareholders by properly utilising its non-core gold assets. The move also further reinforces Blackstone’s primary focus on the flagship Ta Khoa Nickel-Copper-PGE project in Vietnam.
- The new IPO could be well placed to enable Blackstone to execute its strategy of providing additional benefit to shareholders by maximising the intrinsic value of its non-core assets via the transfer of Blackstone’s intellectual capital acquired from previous and existing projects. The move will ultimately ensure that Blackstone investors are exposed to potential exploration upsides in the future.
- The spin out will include Blackstone’s Record Mine Project, Silver Swan South Project, Red Gate Project, and the Middle Creek Project via wholly owned Australian subsidiary Codrus Minerals Limited.
- Upon successful completion of the proposed minimum AUD $5 million IPO, Blackstone will retain an approximately 50% equity interest in Codrus which illustrates management’s commitment to extracting value from non-core gold assets for the benefit of shareholders.
- Blackstone also announced that shareholders will be offered a priority allocation in the capital raise of the Codrus Mineral Limited IPO pursuant to the forthcoming prospectus, reiterating their commitment to the wellbeing of their shareholders.
What does this mean?
The move to spin out non-core gold assets into a new IPO follows on from an ongoing company strategy to maximise shareholder value by optimizing the value added from the Company’s non-core gold assets. The move should see the intellectual capital from Blackstone be deployed in the management of Codrus Mineral Limited which ensures that shareholders are well poised to capitalise on their exposure to exploration upsides.
Blackstone is also looking to retain approximately 50% of Equity in Codrus upon successful completion of the IPO, greatly aligning management agency for the benefit of shareholders in Codrus. If the IPO proves successful, Blackstone could stand to benefit significantly from their non-core gold assets.
