Swick Mining Services has deferred the demerger of Orexplore Technologies until the 2022 financial year.
Orexplore Technologies is comprised of Swick’s drilling business and mineral technology businesses, with the new entity to separate from the parent company.
Swick’s first commercial agreement under Orexplore has been delayed until the 2022 financial year due to the client’s “operational priorities”.
As a result, the company’s board has also postpone the demerger until the 2022 financial year.
“Swick considers securing commercial projects is a key step in developing a clear pathway for the commercialisation of Orexplore’s technology, and therefore for a successful demerger,” Swick stated.
The delay hopes to provide more time to seek a commercialisation pathway with the initial commercial projects.
In October 2020, Swick appointed Jason Marinko as managing director of Swick’s mineral technology business and of Orexplore Technologies.
Marinko has resigned from his role in light of the deferral and will leave the business later this month.
Swick managing director Kent Swick has been enlisted as Orexplore’s managing director as it progresses the demerger, and thanked Marinko for his service.
“The board of Swick would like to thank Mr Marinko for his contribution in advancing the commercialisation of the Orexplore technology and readying the company for its proposed demerger,” he said.
Swick is aiming to spend $2.5 million to $3 million on Orexplore across the next six months, with Orexplore laboratory testing work continuing.
The company also expects to complete the sale of its Surface RC business this month for $6.4 million cash.
Swick does not expect Western Australia’s COVID-19 lockdown to materially impact its operations, but it has temporarily shut down its maintenance workshop in Guilford for two days and adjusted its fly-in, fly-out (FIFO) roster shifts.