Axiant hits ASX after Core Lithium completes spinout
The A$8-million float gives investors direct access to Core’s gold and non-lithium assets while Core keeps a 33% stake.
Axiant Resources (ASX: AXR) began trading in Sydney on Wednesday after Core Lithium (ASX: CXO) completed the spinout of its gold and non-lithium assets, allowing the lithium producer to concentrate on its flagship Finniss operation.
Axiant raised A$8 million in its initial public offering by issuing 40 million shares at $0.20 each. The raising included A$6.4 million from a priority offer to eligible Core shareholders after Axiant lodged its prospectus in July.
“This enables us to maintain our focus on the Finniss Lithium Operation, while retaining exposure to the gold sector through our significant Axiant shareholding,” Core managing director Paul Brown said.
The transaction separates Core’s non-lithium portfolio into a publicly traded company while leaving Core with substantial exposure to Axiant’s performance. Core owns 20 million Axiant shares and holds another 20 million performance rights linked to resource growth and share-price milestones.
Core’s ordinary shares represent a 33% interest in Axiant, giving the company continued exposure to the gold sector without diverting its primary focus from lithium. Its shares and performance rights in Axiant are escrowed for 24 months.
The structure also gives Axiant its own public-market platform and $8 million in fresh capital following its admission to the ASX official list.
Core, a hard-rock lithium company, owns the Finniss lithium operation on the Cox Peninsula in Australia’s Northern Territory.
For July-September, Japanese buyers agreed to pay premiums of $395 per ton.
