Westgold Resources Ltd. said Aug. 5 that it intends to demerge Castile Resources Pty Ltd. and subsequently list the subsidiary on the ASX in order to unlock the value of the unit's assets, which include the Rover 1 iron oxide-copper-gold discovery and the Warumpi project, both in Australia's Northern Territory.
Upon demerging, Westgold shareholders are entitled to receive 1 Castile share for every 4 shares held. Further, Castile intends to raise A$19 million by undertaking a 1-for-1 entitlement offer at 20 cents apiece to shareholders, with proceeds to be used for working capital.
Castile is expected to list on the Australian bourse by November.
Meanwhile, Castile reached an agreement with Andromeda Metals Ltd. to acquire two tenements adjacent to the Rover 1 project for A$650,000.