Next Investors logo grey

Archer Exploration to list non-graphite assets by way of IPO


Published 20-JUL-2018 14:45 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Graphite explorer Archer Exploration is set to list its non-graphite exploration assets on the ASX.

Following an over-arching strategic review of the company that began in April this year, Archer has decided that an independent ownership model of its non-core assets would provide greater shareholder value.

Archer will now pursue an Initial Public Offering (IPO) of the non-graphite mineral exploration business on the Australian Securities Exchange by the end of calendar year 2018, subject to market conditions and shareholder approval.

To facilitate the IPO, Archer today entered into binding share sale agreements with Ballista Resources Ltd – a newly incorporated public company – for the sale of its subsidiary companies SA Exploration Pty Ltd (SAEx) and Archer Energy & Resources Pty Ltd (AER).

SAEx holds the tenements that form the Broken Hill Cobalt Project, North Burra Project and its WA Nickel Project. AER will be the holder of all of Archer’s Eyre Peninsula mineral exploration licences, with rights to explore for all minerals other than graphite on those tenements.

Ballista must list on the ASX for the share sale agreement to take place.

At completion, Archer will receive 48 million Ballista shares which are intended to be distributed to some or all of the Archer shareholders by way of an in-specie distribution. Distribution of these shares are subject to the receipt of favourable tax advice and regulatory and shareholder approval.

Of course AXE remains a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.

Once Ballista lists on the ASX, Archer will hold 48 million Ballista shares (prior to the intended in-specie distribution), the Campoona graphite mining lease and associated miscellaneous purposes licences.

Ballista will prepare a prospectus including offer of securities under the IPO and indicative timetable, with the company informing AXE that it expects to lodge its prospectus by the end of August, just a few weeks from now.

Successful completion will also hand Archer the rights Sugarloaf farm land and exclusive rights to explore for and mine graphite on the Eyre Peninsula tenements, the Carbon Allotropes online market place and all graphite and graphene related intellectual property.

Should the listing be successful, and following Archer’s recent sale of its Leigh Creek magnesia Project, the company should be in a position to focus on the growth and development of its Advanced materials business.

S734 Notice: Archer Exploration make reference to a potential future IPO concerning Ballista Resources within its latest ASX announcement. If the Ballista Resources IPO is undertaken, the relevant Prospectus will be made available when the securities are offered. Potential Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone wishing to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.