(REUTERS) -- Mining company Magma Metals Ltd said it plans to spin off its West Australian gold projects into a new exploration company, to focus on its platinum-palladium-copper-nickel project in Ontario.

The initial public offering for the new company, to be named Greenstone Metals Ltd, will be launched in the first half of 2012 and capital raised by the IPO will fund the development of the West Australian gold properties.

Magma plans to transfer its Lake Grace, Griffins Find, Laura River, Roe and Mount Jewell properties to Greenstone, it said in a statement.

Greenstone is expected to seek a listing on the Australian Stock Exchange and Magma will retain significant equity ownership in the new company.

Magma will now focus on developing the Thunder Bay North platinum-palladium-copper-nickel project in Ontario.

Shares of Magma, which has a market value of C$30.2 million, closed at 10 Canadian cents on Monday on the Toronto Stock Exchange.