Godolphin Resources to Spin Out $12.5M Narraburra Rare Earths Project in $8-12M IPO

Matrix IPO to Unlock Rare Earths Value

Godolphin Resources (ASX:GRL) is set to spin out its Narraburra Rare Earths Project into a dedicated ASX-listed entity, Matrix Critical Minerals, aiming to raise between $8 million and $12 million at 20 cents a share. This move reflects the board’s view that Narraburra’s value is currently underappreciated within Godolphin’s broader portfolio, which also includes the Lewis Ponds gold and base metals project.

The IPO proceeds will fund exploration and development at Narraburra starting in the second half of 2026, marking a strategic pivot to give the rare earths asset its own capital markets profile and investor base. Godolphin plans an in-specie distribution of 50 million Matrix shares to existing shareholders, roughly one Matrix share for every 17 Godolphin shares held, while retaining a 10-12% stake post-IPO.

Narraburra’s Yttrium-Rich Profile Meets Supply Crunch

Narraburra hosts a substantial JORC Mineral Resource of 94.9 million tonnes, including a 20 million tonne higher-grade core at 1,079ppm total rare earth oxides (TREO). Its product is a high-purity Mixed Rare Earth Carbonate (MREC) enriched in yttrium, dysprosium, and terbium; heavy rare earths critical to clean energy technologies and subject to China’s tightened export controls since April 2025.

Notably, Narraburra’s yttrium oxide content represents 18.7% of its MREC by weight, significantly above comparable ASX projects. Benchmark Mineral Intelligence reported ex-China yttrium oxide prices soaring to US$1,575 per kilogram in April 2026, a stark contrast to China’s domestic price near US$10 per kilogram, underscoring the acute supply-demand imbalance. The International Energy Agency has highlighted the lack of western processing capacity to offset Chinese dominance, positioning Narraburra’s product as strategically important.

Capital Structure and Shareholder Benefits

The Narraburra Project and associated exploration licenses have been valued at $12.5 million, with 62.5 million consideration shares issued to Godolphin as part of the asset transfer to Matrix. Godolphin shareholders will benefit directly from the spin-out via the in-specie share distribution and a priority allocation in the IPO capital raise, allowing them to maintain exposure to both the rare earths and Godolphin’s ongoing precious and base metals portfolio.

The offer price of $0.20 per share sets the minimum raise at $8 million, with a maximum of $12 million, providing Matrix with a solid funding base to advance its development plans. Godolphin will hold onto 12.5 million shares in Matrix, preserving a meaningful stake in the new entity.

ASX Listing and Next Steps

Godolphin is finalising its in-principle ASX listing application for Matrix, targeting admission in the second half of 2026. The transaction remains subject to due diligence, shareholder approvals, tax rulings, and prevailing market conditions. The listing will mark a significant milestone, giving the Narraburra project a dedicated platform to attract investor attention amid rising global demand for non-Chinese rare earths.

Matrix’s IPO follows Godolphin’s recent strategic moves to sharpen focus on its core assets, including ongoing development at Lewis Ponds and partnerships to advance exploration. The timing aligns with heightened geopolitical tensions and supply chain disruptions that have elevated the strategic importance of rare earth elements, particularly yttrium-rich deposits like Narraburra.