Red Rock hails news of planned IPO from investee Jupiter Mines on Australian Stock Exchange
Red Rock Resources PLC (LON:RRR) has hailed news from its investee Jupiter Mines Limited that the company is planning an initial public offering (IPO) of its Central Yilgarn Iron Ore assets (CYIP) on the Australian Stock Exchange (ASX) in March.
The AIM-listed firm, which holds a stake in Jupiter valued at around £2.4mln as well as a 1.3% gross revenue royalty over the Mt Ida iron ore project, part of the CYIP assets, said the assets will be offered through a new company, Juno Minerals Ltd, which intends to issue 120mln shares in Jupiter Mines in exchange for the CYIP assets and A$5mln in seed capital provided by Jupiter.
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Furthermore, Juno will make a public offer of 80mln shares to raise A$20mln, with the new company’s priority being to assess fast-track development of the Mount Mason DSO Hematite project as well as options to increase the DSO resource base and crystallise the value of the Mount Ida project.
The issue of shares under the public offer is targeted to take place on March 8, 2021, with trading on the ASX to commence on March 11.
“As a Jupiter shareholder, as well as a royalty holder on the Mt Ida asset, Red Rock welcomes this announcement, which comes at a time when iron ore prices have established a higher trading level than for some years and strong demand seems likely to be sustained. Based on the valuation and performance of its comparators in the Australian market, Juno appears to have good prospects upon listing”, Red Rock chairman Andrew Bell said in a statement.
Shares in the company rose 1.8% to 1.1p in early trading on Thursday.