Minmet has unveiled plans to create a new company, Lapp Plats, through the floatation of its Swedish and Finnish platinum and nickel interests.

The spin-off follows a study examining the firm's Swedish Geochemical Database, which aimed to establish targets for platinum and nickel production. The target report will then be sold to Lapp Plats.

Around £300,000 of private funding will be used to create the company following an issue of Lapp Plats shares on Ofex, although MinMet will remain the majority shareholder.

MinMet chief executive Michael Nolan explained: 'We have taken the decision to form and list Lapp Plats as we feel there is high potential to locate economical platinum and nickel deposits in the region.'

Lapp Plats will initially operate from Minmet's Bjorkdal mine in Northern Sweden using existing MinMet staff and facilities.

Three senior managers at Minmet - Michael Nolan, David Hall and Alan Mooney - will sit on Lapp Plats's board as directors.