Metalicity in Canadian spin-off

West Perth-based Metalicity has announced plans to spin-out its Admiral Bay zinc project on the TSX Venture Exchange as Kimberley Mining, following strong interest from Canadian investment banks and fund managers.

The project, which is located in the Canning Basin south of Broome, has an inferred mineral resource estimate of 170 million tonnes of zinc with a grading of 7.5 per cent.

Metalicity said it had received a number of enquiries over the past six months to consider listing on the TSX venture exchange.

“Further, the relative value ascribed to the asset by ASX investors is very attractive to those investment banks and fund managers,” the company said in a statement to the ASX.

“While some of those market participants can invest on the ASX, and indeed a number of North American institutions corner-stoned the company’s recent capital raising, far and away the majority of them predominantly focus on the North American markets, and have actively encouraged the company to seek a listing of Admiral Bay on the TSX-V.”

The company said a listing on the TSX-V would allow the project to move to a preliminary economic assessment followed by the completion of a pre-feasibility study.

Thus far, Metalicity has completed a scoping study and the first stage of the PFS.

The company said it would now work through process of forming the new company, to be based in Vancouver, followed by an initial public offering on the TSX-V.

“Metalicity is finalising the appointment of highly credible Toronto based mining executives to the board of Kimberley Mining, as well as three Metalicity directors, to advance the listing,” Metalicity said.

“The company is also already advanced in finalising a short list of senior management with outstanding candidates having very quickly emerged, most nominated by fund managers and investment banks.”

Shares in Metalicity were flat at 3.2 cents each at 3pm AEDT.