Power Nickel to Spin Out Golden Ivan Property and Chilean Assets

Strategic Reorganization Announced
Power Nickel Inc. (TSXV: PNPN) has announced a significant strategic reorganization, aiming to enhance shareholder value by spinning out its Golden Ivan property and certain Chilean exploration assets into a new entity called Chilean Metals Inc. (Spinco). This move will allow Power Nickel to concentrate on advancing its Nisk project while Spinco focuses on the newly acquired assets.

Details of the Spin-Out
The spin-out will provide shareholders with stakes in two distinct companies. The Golden Ivan property, situated in Terrace, British Columbia, encompasses 13 mineral claims covering approximately 797 hectares. Spinco will also acquire the company’s interests in various projects in Chile, including Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco. Power Nickel will maintain its royalty interest in the Copaquire project in Chile.

CEO’s Insights on Value Creation
Terry Lynch, CEO of Power Nickel, emphasized that the spin-out aims to unlock potential value for shareholders. He noted that the current ownership structure does not adequately reflect the worth of the properties being spun out. The private nature of Spinco’s formation may also alleviate concerns over a potential short position affecting Power Nickel’s stock.

Exploration Highlights from the Golden Ivan Property
The Golden Ivan property is strategically located in the Golden Triangle, known for its rich mineral resources. Historical data indicates significant past production and current resources, including gold, silver, and copper. Recent exploration efforts have uncovered new high-grade gold zones, demonstrating the property’s substantial potential.

Chilean Assets and Exploration Potential
The company also owns several exploration concessions in Chile, including the Zulema project, which is in proximity to the Cu-Au Candelaria mine. Preliminary drilling results have indicated promising IOCG-style mineralization, with ongoing exploration aimed at defining additional targets.

The Path Forward
The arrangement is expected to be finalized by the end of 2024, subject to approval from Power Nickel’s shareholders, the Supreme Court of British Columbia, and the TSX Venture Exchange. Shareholders will receive further details in an information circular to be mailed out in late October.

Industry Implications and Future Opportunities
The spin-out aligns with broader industry trends where companies are seeking to maximize shareholder value through strategic divestitures. Power Nickel’s focus on its Nisk project, alongside the exploration potential of the Golden Ivan and Chilean properties, positions both entities for future growth.