Mantle Minerals to Cut Shares by 90%, Trading New Securities from March 27

Mantle Minerals Announces Security Consolidation

Mantle Minerals Limited (ASX: MTL) has formally notified the market of a security consolidation, consolidating every 10 existing ordinary shares into one new share. This restructuring also applies to the company’s performance rights, which will be consolidated on the same 10-for-1 basis. The announcement, made on 10 February 2025, outlines a clear timetable culminating in the commencement of trading of the consolidated securities in late March.

Timetable and Process Details

The consolidation will become effective on 14 March 2025, with the last day for trading in the pre-consolidation securities set for 17 March. Trading in the post-consolidation securities will begin on a deferred settlement basis from 18 March, moving to normal T+2 settlement from 27 March. The record date for determining entitlements is 19 March, and the company will update its register and issue new holding statements to shareholders by 26 March.

Implications for Shareholders and Market

Before consolidation, Mantle Minerals had approximately 6.2 billion ordinary shares on issue, which will reduce to around 620 million shares post-consolidation. Similarly, the 468.75 million performance rights will be consolidated to 46.875 million. The consolidation does not require shareholder or court approvals, indicating a streamlined process likely aimed at improving liquidity and aligning the share price with market expectations.

Fractions resulting from the consolidation will be rounded down, which may slightly reduce some shareholders’ holdings. However, this is a common practice in such restructures to maintain whole securities.

Strategic Context and Market Outlook

Security consolidations often signal a company’s intent to enhance its market profile, potentially making its shares more attractive to institutional investors and improving trading efficiency. For Mantle Minerals, operating in the minerals sector, this move could precede further strategic initiatives or capital raising efforts, although no explicit guidance has been provided.

Investors will be watching closely how the market responds once trading resumes on a normal basis post-consolidation, as well as any forthcoming announcements that might leverage the streamlined capital structure.