Australian Tungsten & Antimony (ASX:AT4) announced plans to spin out its Drummond Basin and New South Wales assets into a standalone, gold-focused exploration company, to be named King Metals, pending shareholder and ASX approval.
The proposed demerger aims to unlock the value of ATAA's Australian exploration portfolio, separating it from the company’s US projects, which remain its primary focus.
King will be led by a highly experienced board, including ATAA Chairman Timothy Morrison as non-executive chairman, Chris Piggott as non-executive director, and Nicholas Katris as executive finance director, with a CEO to be appointed to drive exploration programs across the assets.
As part of the initial public offering, King intends to raise between $4.5 million and $6 million (before costs), with eligible ATAA shareholders entitled to participate in a priority offer.
The Drummond Basin portfolio features high-potential low-sulphidation epithermal and intrusion-related gold targets, including the Old Glenroy Project, SW Limey, and Breccia Hill, where recent exploration has identified new epithermal systems and feeder structures.
ATAA's NSW portfolio encompasses multiple prospects, including Taylors Arm, Spartan, and North Nundle, historically rich in gold and silver but underexplored in recent decades.
The demerger and IPO are contingent on shareholder approval.
At the time of reporting, Australian Tungsten & Antimony's share price was $0.115.