Reinvented mining company Access1 has cut all ties to the mineral world by finalising the spin-off of its entire gold assets and mining business into a separate company, Phoenix Mining.
Previously operating as Kilkenny Gold, Access1 raised $3.25 million from the spin-off and no longer has any involvement in the mining industry, said Tony Brennan, Access1's managing director.
Phoenix Mining is a separately listed company. It is due to commence trading on the ASX this Friday and has raised $4 million by offering 20 million shares (with a free option attached) exclusively to Access1 shareholders.
Access1 provides high-speed multimedia broadband services via satellite. According to Brennan, the funds will go into "working capital" to be used for the development of the company, taking Access1's cash holdings to over $10.5 million.
Brennan said there are no plans to use the cash for specific projects as yet. However, he did not rule out the possibility that the capital would be used to assist Eisa with the completion of its $300-$350 million acquisition of OzEmail Internet.
"It's too early to talk about that," he said. "We have been talking to Eisa . . . (on) providing broadband services on a contractual basis.
"We were talking to OzEmail to provide the ability to give broadband connectivity (and now) we're talking to Eisa as somebody who might own (OzEmail)," Brennan said. "As for whether we will be part of a syndicate to help Eisa acquire OzEmail . . . who knows?"
Meanwhile, Brennan said Access1 has several other transactions and alliances in the pipeline. The organisation, which has already formed an alliance with the Seven Network's Pay TV station, C7, is focused on becoming a "content aggregator" for all content, whether it be television, streaming media or text, Brennan said.
Further announcements regarding partnerships are expected to be made shortly.