The gold and base metal exploration company, Ironbark Gold, (IBG) said on Wednesday it plans to divest its gold assets into Waratah Gold Ltd, a focused gold explorer.
Waratah is a wholly owned subsidiary of Ironbark with intentions to list on the Australian Stock Exchange and will seek to raise approximately $3.5 million under an IPO at 20 cents per share.
Waratah will be managed by Andrew Maurice who has extensive business experience working in a broad range of industries.
"Waratah will set new standards of business practice with no promoter shares or seed investor shares to be issued," Ironbark said
"In addition no shares or options have been granted to the directors of Ironbark and no broker fees will be payable. This will result in an exceptionally streamlined capital structure."
Ironbark will retain a vendor stake of 5 million shares in Waratah.
"The divestment is expected to unlock significant value for Ironbark shareholders through its retained interest in Waratah whilst the gold price continues to set new highs," Ironbark said.
Shares in Ironbark rose 25 cents or 62.50% to 65 cents.
