Sky Metals and Advance Metals plan gold spin-out listed on ASX in 2027

what happened

According to smallcaps.com.au, Sky Metals has agreed in principle to a non-binding plan to pool its gold projects in New South Wales with Advance Metals' Victorian holdings in a separate company that would trade on the ASX. Sky's Cullarin, Kangiara and Caledonian projects would join Advance's Myrtleford and Beaufort assets, creating a gold exploration footprint of over 2,000 square kilometres in southeastern Australia.

Sky would hold 15 million shares, valued at $3 million and indicatively 18.75% after listing. Advance would contribute its two Victorian projects for 30 million shares deemed worth $6 million, an indicative 37.5% stake. The planned IPO targets $6 million at 20 cents a share, with a priority offer of up to $3 million for eligible shareholders, and listing is aimed for the first half of 2027. The parties hope to satisfy all conditions by March 2027, and shares issued to the two companies would be escrowed for 24 months.

The board would include one director from each company, an independent chair and an executive chosen by both sides. Sky's managing director Oliver Davies said the deal could unlock the value of its gold assets through a company focused only on discovery. Advance's chief executive Adam McKinnon said he looked forward to building the new explorer alongside Sky.

why it matters

For broader markets this is a small-cap corporate story rather than a driver of gold prices. Sky would keep gold exposure while focusing management on its core tin-tungsten development portfolio. The key checkpoints are the IPO subscription and whether the remaining conditions are met on schedule.

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