Alba Mineral Resources plc plans to create a spin-out focused on its mineral assets in Greenland.
RATIONALE
The company’s portfolio includes Amitsoq graphite, Thule Black Sands ilmenite, and Melville Bay iron ore.
Alba is finishing preparations for 2021 summer drill programmes as it awaits lifting of travel restrictions due to Covid-19.
The company ruled out a joint venture with third parties in favour of selling the projects into a separate vehicle, Greenland Listco.
Greenland Listco will acquire the assets in exchange for shares and also undertake an initial public offering (IPO) fundraising for working capital to speed up development.
Alba will have a “significant” shareholding in the new company but no longer fund the projects, allowing it to focus on its UK and Irish precious and base metal assets.
“The Alba board has concluded that the case for divesting of the Greenland projects into a Greenland-dedicated listed vehicle is an overwhelmingly strong one,” said executive chairman George Frangeskides.
“We will, therefore, be seeking the admission of a new English public company to the AIM market, subject to the necessary regulatory approvals.
“That company will own 100% of the Amitsoq graphite, Thule Black Sands ilmenite, Melville Bay iron and Inglefield multi-element projects.”
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