Disposal of non-core assets by mineral exploration and development company by way of selective share buyback

Coppermoly Limited is an ASX Listed mineral exploration and resource development company, whose founding project comprised a portfolio of copper and gold projects in Papua New Guinea.

Following the outbreak of COVID-19 and resulting restrictions on travel and disruption to exploration activities, the Company re-prioritised its focus on its highly prospective copper gold project in Mt Isa, Northwest Queensland, where management considered it could more effectively progress exploration activities.

The transaction was structured by way of a sale of Coppermoly’s PNG subsidiary to its major shareholders, who continued to strongly support the project and had invested significant sums in Coppermoly over the previous 5-10 years.

By structuring the transaction in this way, Coppermoly also sought to address any perceived concentration of voting power in the Company, with the hope that this will facilitate greater interest and financial support of the Company from the Australian financial community and reduce financial reliance on a few key shareholders.

The team assisted in all aspects of the proposed acquisition, including initial structuring genesis, sale documentation, ASIC regulatory relief and ASX shareholder approval requirements.