Metals X spins off gold assets

Company News

by David Chau

Metals X (ASX:MLX) shares have fallen almost 60% since the start of trade this morning, following the spin-off of the company’s gold assets. 

Today, the company released a substantial shareholder notice increasing Blackrock’s interest in the company to almost 14 percent.

Last week, Metals X shareholders approved the demerger of the company, where its gold assets will be spun-out to another company called Westgold.

Westgold will be led by Peter Cook, the chief executive of Metals X, and it will become one of Australia’s top-10 ASX-listed gold producers.

Metals X posted a $23.6M net loss at 30 June 2016.
 

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.