Mayur plans metals spin-out on TSX-V

The spin-out and listing is expected to be completed by the end of the year, with the newly listed entity expected to raise some C$5-million to unlock grater shareholder value from its assets.

To enhance the value of the spin-out, Mayur would also acquire all of the shares in two privately held companies; Ballygowan and Pacific Arc Aurum, which hold highly prospective gold assets in PNG, including the Gameta and Wapolu projects on the Fergusson Islands.

Mayur would initially remain the largest shareholder of the new vehicle, and would complete an in-specie distribution of its shares to current shareholders, in line with the TSX-V and other regulatory requirements.

Mayur MD Paul Mulder said on Wednesday that the spin-out followed the board’s commitment to unlocking value for shareholders, and was consistent with the company’s strategy of preserving diversification while delivering material value.

“I understand and support that different investors in Mayur prefer a diverse asset exposure, but retaining a primary exposure to industrial minerals and energy that contributes to nation building in PNG is the priority,” said Mulder.

“Mayur shareholders have indirect exposure to a new entity with a highly experienced and dedicated team that will make the most of our significant gold inventory and geological endowment in a capital-rich jurisdiction renowned for supporting gold explorers and emerging producers.”

Mulder said that Mayur would be better placed to achieve considerable gains, while the newly listed entity, which would be renamed as part of the transaction, would leverage the company’s existing in-country expertise to return greater value for shareholders.

Mayur’s nonexecutive director Frank Terranova has agreed to take on the role of MD of the spin-out.