Australasian Resources (ARH) said on Wednesday it plans to spin-off its nickel and other assets into a separate listed entity. This follows an earlier announcement that CITIC Pacific Ltd has concluded agreements with privately owned Mineralogy and ARH's major shareholder, Professor Clive Palmer to acquire another iron ore project at Balmoral, in the Pilbara region of Western Australia.
"Details of the structure of the spin-off and timing have yet to be determined, however it is envisaged that shareholders would have an opportunity to become investors in the spin-off entity either on an entitlements or priority allocation basis," managing director Andrew Caruso said.
The proposed spin-off of the company's non iron ore assets, including Sherlock Bay Nickel Project, will provide a better opportunity to deliver more value from these projects to shareholders.
Just last week, ARH said it secured further expansion into the mining, processing and infrastructure (needs word here) at its ‘world-class' Balmoral South Iron Ore Project.
ARH has paid off handsomely for some investors. The value of $1,000 invested one year ago is now over $13,000.
Shares in ARH soared as much as 16.8% to $2.08 during intraday trading.
They closed up 15% or 27 cents at $2.05.
