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Kagara spins off gold

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Kagara has announced the terms for the IPO of its gold assets.

The newly formed gold company will be known as Mungana Goldmines.

The spin off, valued at $149 million, will see 80 million shares sold at 95 cents each with the company aiming to raise $76 million via an institutional offer.

Kagara shareholders will receive one Mungana share for every 16 Kagara shares they hold, with Kagara retaining an overall 49% stake in the gold company.

Mungana’s key focus will be the Red Dome and Mungana gold projects in North Queensland.

The assets have a combined JORC resource of 1.85 million ounces of gold and 180 000 tonnes of copper.

Kagara will aim to list Mungana on the ASX on 27 May.


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