Advance Metals and Sky Metals plan $6M IPO spin-out
Key points
- Advance Metals and Sky Metals signed a non-binding term sheet to merge their Australian gold assets into a new company.
- Advance Metals will receive 30 million shares valued at $6 million, while Sy Metals will get 15 million shares worth $3 million.
- The new entity targets a $6 million initial public offering on the ASX in the first half of 2027 to fund exploration.
Advance Metals (ASX:AVM) and Sky Metals (ASX:SKY) signed a non-binding agreement to spin out their Australian gold projects into a new entity seeking a $6 million listing.
The deal combines five exploration projects covering over 2,000km2 in Victoria and New South Wales into one portfolio.
Under the proposed terms, Advance Metals will receive 30 million shares representing 37.5% of the new company, while Sky Metals will take an 18.75% stake.
Advance Metals' Managing Director and CEO Adam McKinnon said, "By providing these assets with dedicated management, capital and exploration focus, we believe their potential can be more effectively realised."
Both companies stated the spin-out aims to create a dedicated Australian explorer targeting an ASX listing in the first half of 2027.
Following the announcement, the Advance Metals share price was up at $0.036.
Advance Metals has focused heavily on its Mexican silver projects in 2026 after moving to 100% ownership of its Victorian gold assets in May.
Sky Metals spent $2.3 million on exploration in the September quarter, primarily advancing its Tallebung tin and tungsten project in New South Wales.
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