Blackstone Minerals (ASX:BSX)
has decided to spin off some its non-core gold assets into a new initial public offering.
It intends for its wholly owned Australian subsidiary, Codrus Minerals, to undertake an IPO in Q2 and seek a listing on the ASX.
The spin off company will hold its Record Mine Project, Silver Swan South Project, Red Gate Project, and Middle Creek Project.
Blackstone will retain approximately 50 per cent of Codrus following the IPO and Blackstone shareholders will get a priority allocation in the IPO.
Blackstone says a spin out of the projects is optimal compared to project divestment as it enables the transfer of Blackstone’s knowledge of the projects and ensures exposure to exploration upside is retained for Blackstone shareholders.
Shares in Blackstone Minerals (ASX:BSX)
are trading 2.5 per cent higher at 42 cents.