Thomson Geer assists mineral exploration company on ASX debut

The firm also advises the company on its $6m initial public offering and demerger

Thomson Geer assists mineral exploration company on ASX debut

Thomson Geer has advised WA mineral exploration company Cannon Resources Limited on its ASX listing, with the bell ringing on 12 August.

The firm also assisted Cannon with its $6m initial public offering and demerger from gold exploration and development company Rox Resources Limited. As a result, Cannon becomes a new standalone nickel and base metals-focused company, according to an ASX announcement.

The demerger is expected to maximise the value of and accelerate work on Rox’s two flagship nickel projects, Fisher East and Collurabbie, Thomson Geer explained. Rox will concentrate on its gold assets while retaining an 11.4% interest in Cannon.

“Rox shareholders will retain exposure to the Fisher East and Collurabbie Nickel Projects through their in-specie shares in Cannon and any shares they subscribed for as part of Cannon's IPO,” the firm said.

The IPO will not only create growth opportunities for the two projects, but it will be crucial to Cannon meeting its goals by generating capital to support the company’s exploration of its tenements down the line, Thomson Geer noted. The funds will also be applied to Cannon’s working capital requirements.

“It has been a pleasure assisting the teams at Rox and Cannon as we successfully navigated the demerger, IPO and Cannon’s debut onto the ASX. We wish them every success with their future exploration projects,” partner Scott Gibson said.

Gibson worked alongside partner Hedley Roost and lawyer Ryan Gava on the transaction.

Cannon CEO Steve Lynn said in the ASX announcement that the company’s future “looks bright and we are determined to unlock the value inherent in our nickel assets.”

“Cannon is currently diamond drilling one of our highest priority targets at Fisher East and looks forward to updating the market as results materialise,” he added.