Pilbara iron ore miner Flinders Mines Ltd
(ASX:FMS) has announced plans to list its non-core diamond and phosphate exploration assets through a new company, Flinders Exploration.
Flinders Mines hopes to list its spin-off on the ASX early next year and is targeting $10 million in an IPO.
Flinders Mines will retain around 20% of the company and will fund up to a maximum of $1.5 million of the new company's exploration program.
Managing Director Dr Kevin Wills says the spin-off will allow Flinders Mines to focus on its Pilbara iron ore development, while also retaining exposure to the diamond and phosphate assets.
Flinders Exploration will farm into the diamond and phosphate exploration potential of the Flinders Mines tenement portfolio.
The proposed transaction is subject to shareholder approval.
Flinders Mines posted a loss for fiscal 2009.
