Power Nickel Inc. (TSXV: PNPN) will spin out its Golden Ivan property and Chilean exploration assets. They will create a new entity, Chilean Metals Inc. (Spinco). This move lets Power Nickel focus on its Nisk project. Spinco will manage the new assets.
Spin-Out Details and Asset Distribution
The spin-out gives shareholders stakes in two companies. The Golden Ivan property, in Terrace, British Columbia, covers 797 hectares. Spinco gets Power Nickel’s interests in Chilean projects. These include Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco. Power Nickel retains its royalty interest in the Copaquire project. Terry Lynch, Power Nickel’s CEO, says the spin-out unlocks shareholder value. The current structure understates the properties’ worth. Spinco’s private formation may reduce concerns about short positions.
Golden Ivan Property Exploration Highlights
The Golden Ivan property is in the Golden Triangle. It is known for rich mineral resources. Historical data shows past production and resources. These include gold, silver, and copper. Recent exploration found new high-grade gold zones. The company owns Chilean exploration concessions. The Zulema project is near the Cu-Au Candelaria mine. Preliminary drilling shows promising IOCG-style mineralization. Ongoing exploration aims to find more targets.
Path Forward and Approvals
The arrangement should finalize by late 2024. It needs approval from Power Nickel’s shareholders. Approvals are also needed from the Supreme Court of British Columbia and the TSX Venture Exchange. Shareholders will get details in an information circular in late October. The spin-out aligns with industry trends. Companies seek to maximize shareholder value via strategic divestitures. Power Nickel’s Nisk project focus and Spinco’s exploration potential position both for growth.
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