Magnetic Resources NL (ASX:MAU) is spinning out its 100%-owned Western Australian nickel and rare earth assets into a new Initial Public Offering (IPO) to form a dedicated ASX-listed critical mineral focused exploration vehicle, Aureole Resources Limited.

Magnetic will retain upside exposure through an approximate 30% cornerstone equity holding in Aureole.

The IPO will raise a minimum of $5M and up to $7M at an issue price of $0.20, with eligible Magnetic shareholders entitled to participate in a priority offer of IPO shares.

Ventnor Securities Pty Ltd have been appointed Lead Manager to the IPO and the Prospectus for the IPO will be lodged in the coming months.