Sale delivers Mithril Resources equity stake in
Kidman Resources leading into ASX listing
Mithril Resources (ASX:MTH) today announced a proposal to sell its Casey Project to Kidman Resources Limited (“Kidman”) in return for an equity position ahead of its planned Initial Public Offering (IPO) and listing on the Australian Stock Exchange (ASX).
Under a Heads of Agreement, Mithril Resources will transfer the three Northern Territory Exploration Licences that make up the Casey Project to Kidman (Figure 1). Kidman will issue 2,000,000 fully paid ordinary shares to Mithril Resources as consideration for the transfer.
“This transaction will allow Mithril to intensify its focus on drilling programs at our Basil copper discovery at the Huckitta project in the Northern Territory and the Pardoo project in Western Australia,” said Mithril Resources Managing Director Graham Ascough.
“The equity position provides Mithril shareholders exposure to an emerging explorer with a focus on gold and copper.”
Kidman is a newly incorporated company which will explore for gold and copper deposits in Australia and is in the process of consolidating a portfolio of exploration projects in New South Wales and the Northern Territory.
In addition to Casey, Kidman holds one other tenement in the Northern Territory and six tenements in the prospective Lachlan Fold Belt in New South Wales. The Lachlan Fold Belt is richly endowed and hosts a range of economic gold and copper deposits including the large Cadia-Ridgeway deposits.
The sale of the Casey Project is conditional upon due diligence and the ASX granting Kidman conditional approval for its ordinary shares to be listed for quotation by October 31st, 2010.
“Details of the Kidman IPO, the company’s management team and its other projects will be made available in due course,” Mr Ascough said.
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