Shareholders will get to have their say on Alkane Resources' proposed demerger of Australian Strategic Metals (ASM) at a meeting in July.
A wholly-owned subsidiary of Alkane Resources, ASM owns the $1 billion Dubbo Project.
The shovel-ready project is based on a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements at Toongi, south of Dubbo.
Alkane Resources calls it the "most advanced poly-metallic project of its kind outside China".
The company's board has given the demerger the green light subject to the finalising of outstanding regulatory matters and shareholder approval.
It anticipates the listing of ASM on the Australian Securities Exchange in mid-July.
Board chairman Ian Gandel is promoting the demerger.
"The demerger of ASM will provide investors two opportunities to grow value," he said.
"In Alkane as a growing gold exploration, development and production company, and in ASM as an exciting critical materials business leveraged to the changing world economy."