Strickland Distributes 1.2 Billion Gateway Shares Worth A$45 Million to Shareholders
Strickland Metals has completed the sale of its Yandal Gold Project to Gateway Mining, distributing most Gateway shares directly to its shareholders and sharpening its focus on the Rogozna Project in Serbia.
- Sale of Yandal Gold Project to Gateway Mining completed
- Strickland shareholders to receive 53 Gateway shares per 100 Strickland shares
- Total consideration valued at A$45 million in Gateway equity
- Strickland retains 15.7% stake in Gateway post-transaction
- Focus shifts to advancing Rogozna Project with 7.4Moz AuEq resource
Strategic Divestment Completed
Strickland Metals Limited has officially completed the sale of its Yandal Gold Project in Western Australia to Gateway Mining Limited, marking a significant milestone in the company’s strategic repositioning. The transaction, valued at A$45 million in Gateway equity, transfers ownership of the Yandal assets while allowing Strickland to streamline its portfolio and focus on its international ambitions.
As part of the deal, Strickland will distribute approximately 80% of its Gateway shareholding directly to its shareholders through an in-specie distribution. Eligible shareholders will receive roughly 53 Gateway shares for every 100 Strickland shares they hold, effectively giving them direct exposure to the Yandal Project’s future development under Gateway’s stewardship.
Shareholder Value and Retained Interest
Post-transaction, Strickland retains a meaningful 15.7% stake in Gateway, maintaining a foothold in the Yandal Project’s upside potential. This dual approach balances immediate shareholder value with ongoing participation in the project’s future growth. The in-specie distribution record date is set for 22 August 2025, with shares expected to be dispatched by 25 August.
Strickland’s Managing Director, Paul L’Herpiniere, emphasised the benefits of the transaction – "We have crystallised significant value for our shareholders and streamlined our asset base as a focused international resource development company." He highlighted the company’s pivot towards the Rogozna Project in Serbia, a Tier-1 asset boasting a substantial 7.4 million ounce gold equivalent resource and strong near-term growth potential.
Rogozna Project – The New Frontier
With eight rigs currently active at Rogozna, Strickland is positioning itself for continuous exploration news and resource upgrades later this year. The project’s scale and quality have attracted global investor attention, underpinning the company’s strategic shift away from Australian assets to focus on this promising international opportunity.
The sale and distribution also allow Strickland shareholders to benefit indirectly from the Yandal Project’s future development through their new Gateway shareholdings, managed by a dedicated and experienced team at Gateway Mining.
Tax and Regulatory Considerations
Strickland is seeking a class ruling from the Australian Taxation Office to clarify the income tax implications of the in-specie distribution for shareholders. While the final tax treatment remains uncertain until the ruling is received, the company has advised shareholders to seek independent professional advice.
This transaction not only reshapes Strickland’s asset base but also signals a broader trend of companies refining their focus on core projects while unlocking value through strategic divestments and shareholder distributions.
Bottom Line?
Strickland’s divestment of Yandal and shareholder distribution sets the stage for a focused push on Rogozna, with investors watching closely for exploration updates and Gateway’s progress.
Questions in the middle?
- How will Gateway Mining advance the Yandal Project post-acquisition?
- What are the detailed tax implications for Strickland shareholders receiving Gateway shares?
- How soon can Strickland deliver a significant resource upgrade at Rogozna?
