Ardea Resources plans to spin out its gold and base metal tenements in New South Wales into a subsidiary named Godolphin Resources.
The dedicated subsidiary will focus on the development of the Lewis Ponds gold-zinc and Mount Aubrey gold projects in the Lachlan Fold Belt region. The projects, including the Yeoval copper-gold and the Lachlan Mine gold development, have ‘open-pit gold potential’.
“We understand that different investors in Ardea have preferences for different asset exposure, and with the Godolphin spin out we can clearly separate the WA Goongarrie nickel-cobalt project nickel production opportunity from the NSW gold production opportunity with ancillary gold-base metal exploration,” Ardea chief executive Andrew Penkethman said.
Ardea anticipates Godolphin’s initial public offering will occur in the last quarter of this year, subject to shareholders’ approval.
The company has advanced its NSW projects toward defining four separate JORC-compliant mineral resources, leading to the definition of drill-ready targets across granted Godolphin tenure to date.
Ardea has become the second largest mineral tenement holder in NSW with some 3216 square kilometres since its listing in 2017.
Godolphin’s IPO is expected to raise $4.5–8 million through the issue of 22.5–40 million new fully paid ordinary shares.
The funds will be used toward resource definition and extension drilling, prioritised on the Lewis Ponds and mount Aubrey targets.