PERTH (miningweekly.com) – ASX-listed Neometals on Tuesday revealed that its demerged Widgie Nickel would look to raise some A$24-million through an entitlement offer, as the company readies to list on the ASX.

Neometals previously flagged the demerger of its Mt Edwards nickel project, in Western Australia, into the dedicated nickel exploration and development company Widgie Nickel.

The company on Tuesday said that it had now received in-principle approval from the ASX to allow Widgie Nickel to list. Neometals will shortly call a shareholder meeting to approve the demerger, along with a short form prospectus relating to the in-specie distribution of Widgie Nickel shares to eligible Neometals shareholders.

If the demerger conditions are satisfied, Neometals will distribute 100% of the Widgie Nickel shares on issue to eligible Neometals shareholders via a capital reduction and in-specie distribution of those shares, pro rata to their shareholding in Neometals as at 26 August 2021.

Eligible Neometals shareholders will receive one ordinary share in Widgie Nickel for approximately every 4.218 shares held in Neometals.

Widgie Nickel also proposes to complete a A$24-million fundraising via an underwritten, non-renounceable pro rata entitlement offer to its shareholders who remain on its share register on the relevant record date on a 1 for 0.923 basis at A$0.20 per new Widgie Nickel share.

“Widgie Nickel presents investors with a compelling opportunity to gain exposure to an exciting nickel focussed development story. With a material resource inventory and a commanding landholding over the prolific Widgiemooltha dome, strategically located next to major infrastructure, we are well placed to start an exciting independent journey,” Widgie Nickel MD Steve Norregaard said.

“We look forward to welcoming Neometals shareholders onto our register and would like to thank the Neometals board for creating an independent vehicle with the technical, human and financial resources the Mt Edwards project deserves.”

The Mt Edwards project contains an estimated mineral resource of 162 000 t of contained nickel across 11 deposits. The project spans some 50 km of strike across the Widgiemooltha dome.