Mayur Resources Ltd (ASX:MRL) has successful listed its Papua New Guinea gold-copper assets on the TSX-Venture Exchange in Canada as Adyton Resources (CVE:ADY).
The spin-out saw more than C$10.5 million raised via a syndicate of northern hemisphere banks which valued Adyton at around C$38 million.
Shares in ADY began trading on the TSXV on February 24 and they traded between C$0.26 and C$0.40.
Mayur owns around 43% of ADY shares on issue, valued at approximately C$14 million to C$21 million on the above range, and has non-executive representation on the ADY board.
Listing “a key milestone”
Mayur managing director Paul Mulder said: “Adyton’s listing represented a key milestone in the delivery of Mayur’s disaggregation strategy which is designed to unlock the underlying value that exists within a diversified portfolio of assets which includes cement, limestone, energy and industrial minerals.
“This transaction has demonstrated the intrinsic value of Mayur’s copper-gold assets that the board and major shareholders believed the market was not fully valuing.
“Independent brokers’ research, prior to the pre spin out, was assigning an average of 7.5% of MRLs share price target to the value of our copper/gold assets.
“Post spin out this is now 24% to 38% based on the above trading range, hence representing a 3.3 to five times uplift.
“The mark to market looks through valuation now provides a clear valuation for Mayur’s holding in Adyton going forward.”
“Win-win” situation
Mulder said: “This is a win/win for Mayur shareholders and our PNG stakeholders who will now see these assets materially progressed in real-time, with a high calibre and dedicated management team.
“Of particular interest has been the recently reprocessed Feni Island IP geophysical data which shows a strong copper porphyry interpretation and will be tested by an upcoming drill program.
“We have learned a lot from this initial spin out and will apply this knowledge as we look to unlock further value from our portfolio via our ongoing disaggregation strategy.”
Value creation
Mulder said: The Adyton spin-out has confirmed that Mayur has the capability to complete value-creating opportunities for shareholders and we look forward to updating the market in coming weeks as we continue to deliver on this strategy.”
“Mayur intends to distribute the ADY shares to MRL shareholders via an in-specie distribution.
“The demerger of the copper and gold portfolio will also reduce overall operating costs and enable Mayur to further refine and simplify the business and focus on core project development activities.”
The company expects that 75% of the holding will be distributed approximately 12 months from the Adyton listing date and the remaining 25% distributed six months later under TSXV escrow conditions and other regulatory and shareholder approvals.
