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Australasian to spin off assets
November 7, 2007 - 6:04PM

Australasian Resources Ltd will spin off its nickel and other assets into a separate listed entity.

The company will also acquire additional assets next door to its flagship Balmoral South iron ore project in Western Australia's Pilbara region.

Australasian has commenced negotiations with entrepreneur Clive Palmer, who owns the broader Balmoral deposit through his private company Mineralogy Pty Ltd, to acquire the additional iron ore assets.

The structure and timing of the spin-off is yet to be determined.

However, it is expected that shareholders will have an opportunity to become investors in the new entity either on an entitlements or priority allocation basis.

Australasian says the Balmoral deposit is the world's largest undeveloped magnetite iron resource.

Shares in the Perth-headquartered explorer closed 27 cents, or 15.17 per cent, higher to $2.05