Alkane Resources shareholders overwhelmingly approve spinoff of specialty materials unit

Alkane Resources Ltd’s (ASX:ALK) shareholders have approved the demerger of Australian Strategic Materials Limited (ASM) at today’s Extraordinary General Meeting (EGM). ASM will become one of Australia’s preeminent specialty materials development companies when it lists on the ASX, which is on track, and expected on or around July 30 2020. Alkane will become a pure-play Australian gold company with balance sheet strength, a quality production asset in Tomingley, and an exciting development pathway with one of Australia’s most significant exploration discoveries at Boda. “Already seeing benefits of a clear strategic focus” Alkane chairman Ian Gandel said: “The board is delighted that Alkane shareholders have supported this critical corporate initiative for our company with such an overwhelming majority. “Indeed, in excess of 99.9% of votes cast at the meeting were in favour of the Demerger transaction. “During implementation planning, and with the appointment of David Woodall as Managing Director of ASM earlier in the year, we are already seeing the benefits of a clear strategic focus for both companies.” “Simplified Australian gold company” Managing director Nic Earner said: “This is a historic development for both Alkane Resources and Australian Strategic Materials. “Alkane will emerge as a simplified Australian gold company with balance sheet strength, a quality production asset in Tomingley, new discoveries at Roswell and San Antonio and the opportunity to advance one of Australia’s most significant exploration discoveries at Boda into development and future production. “I wish Dave and the ASM team all the very best with advancing the Dubbo Critical Minerals Project and the Korean “Clean Metal” JV.” “ASM in a strong position to develop Dubbo” ASM managing director David Woodall said: “The Demerger, and ASM’s imminent listing, come at an opportune time for our business. “Building on Alkane’s long-term commitment to the Dubbo Project, 2020 is shaping up as a landmark year for ASM. “In the past month alone, we have had some very significant results from the commissioned Korean Commercial Pilot Plant, and we look forward to confirming other positive results from the Dubbo Project key product suite in the coming months. “This, together with the transformational flotation test work in Australia, places ASM in a strong position to develop Dubbo.”