Australian Strategic Materials (ASM) is one step closer to listing on the ASX, as the board of Alkane Resources (ASX: ALK) has resolved to progress the demerger of ASM, and listing ASM on the ASX, subject to finalisation of outstanding regulatory matters and shareholder approval at an Alkane Shareholder Meeting expected to be convened in early July 2020. ASM is currently anticipated to list in mid-July 2020.
Alkane Chairman Ian Gandel said, “The turbulence experienced in global equity markets in March and April has abated to the extent that the Alkane board has decided the time is right to make the final preparations to demerge and list ASM in the coming months, subject to shareholder approval.
“Since joining in February, ASM Managing Director, David Woodall, and the ASM team have focused on distilling the key value drivers for ASM and the Dubbo Project, and have brought new focus, momentum and opportunity to the team which is working hard to realise catalysts for the Dubbo Project and the ‘Clean Metal’ metallisation technology in South Korea.
“The demerger of ASM will provide investors two opportunities to grow value; in Alkane as a growing gold exploration, development and production company, and in ASM as an exciting critical materials business leveraged to the changing world economy.”
ASM’s $1 billion Dubbo Project in Central West NSW is an advanced polymetallic project with a large in-ground resource of zirconium, rare earth elements (including yttrium), niobium, and hafnium. This polymetallic project represents a strategic and independent supply of critical minerals for a range of sustainable technologies and future industries. The Dubbo Project is development ready, subject to financing, with the mineral deposit and surrounding land acquired, all major State and Federal approvals in place and extensive piloting and engineering completed.
ASM is currently building a pilot plant facility in South Korea to produce these high-purity metals in parallel with developing the design for the world’s first commercial-scale metal plant. This will help meet the growing demand for a new source into domestic and global markets for ASM’s range of high-purity and value-added critical metals – including zirconium, rare earth magnet metals, praseodymium and neodymium, and hafnium.
In March, the Australian Government-owned Export Finance Australia (EFA) confirmed interest in financing ASM’s Dubbo Project, stating it closely aligns with the recently announced initiative by the Australian Government to develop its “Critical Minerals” sector.
Substantial preparation has already occurred in readiness for ASM to operate as an independent listed entity. Today, Mr Woodall will be presenting at the Goldman Sachs Webinar Series. You can view the presentation here.