Pacgold to Demerge North Queensland Projects to Manda Resources, Shares Up 10%
Pacgold (ASX:PGO) entered into a binding agreement to demerge the Alice River gold project and St George gold-antimony projects, both in North Queensland, into Manda Resources, an entity backed by its major shareholder, Emerald Resources (ASX:EMR), according to a Wednesday Australian bourse filing.Subject to Pacgold shareholder approval, eligible Pacgold shareholders will receive an in-specie distribution of one Manda share for every 6.76 Pacgold shares held, representing 64 million shares in Manda at a deemed issue price of AU$0.25.Manda is expected to raise AU$9 million after a pre-initial public offering (IPO) seed capital raising round. It will then seek to acquire a public unlisted company, Territory Minerals, securing ownership of the Tregoora, Northcote, Atric, and Reedy gold projects, also in North Queensland.Manda received in-principle advice from the ASX that its structure and operations are suitable for a listing and it plans to conduct an IPO late in the year. It expects to raise a minimum of AU$21 million, before costs, subject to market conditions. Manda will seek to offer Pacgold shareholders a priority allocation of AU$2 million within the IPO.Emerald expects to cornerstone the IPO raising and intends to hold around a 19.9% stake in Manda after the IPO.Its shares jumped 10% in recent trading on Wednesday.
