CBH Resources Ltd shareholders have voted in favour of spinning off several of the company's assets into a new entity, Kimberley Metals, which is expected to list on the Australian stock exchange in four to six months.
One of these assets is the Constance Range iron ore deposit in Queensland, which was previously explored by BHP Billiton Ltd.
"These assets are primarily our pre-development assets, which have enormous potential but require further exploration and investment before they can be potentially developed into producing mines," chairman Jim Wall said.
"By placing these assets into a separate company, we believe they will deliver enhanced value for CBH shareholders.
"We believe they will receive more attention and a sharper focus from the market and will be more highly valued by the market than they are at the moment.
"Separating these assets will allow Kimberley Metals to concentrate entirely on turning these exciting assets into profitable future projects."
CBH shareholders will receive shares in Kimberley Metals.
Mr Wall said the spin-off would allow CBH and Perilya Ltd - which announced merger plans in March to create a $500 million lead and zinc producer - to focus on existing mining operations.
Shares in CBH were half a cent higher at 35.5 cents at 1334 AEST while Perilya's shares were up one cent to $1.025.
© 2008 AAP
