Power Nickel (TSX-V:PNPN) has received shareholder approval to spin-out its Golden Ivan property in British Columbia and its Chilean projects into a private new company, Chilean Metals.
In October, the Canadian explorer announced the demerger will be conducted via a plan of arrangement, in which Power Nickel shareholders will receive common shares in Chilean Metals.
As part of the arrangement, which is expected to become effective on or about 31 January 2025, Power Nickel will issue each shareholder one new Power Nickel share, as well as 0.05 of a Chilean Metals share, for each Power Nickel share already held.
Upon closing of the arrangement, Chilean metals will be 50% owned by Power Nickel and 50% owned by shareholders.
In conjunction, Power Nickel has obtained a final order from the Supreme Court of British Columbia regarding the spin-out, which was a condition of the arrangement.
Power Nickel says the spin-out will provide investors with an ownership stake in two separate specialised companies.
“We believe Chilean Metals can advance our key projects in Chile and in British Columbia, and create considerable value that is not being seen as investors correctly focus on our exciting polymetallic discovery,” the company says.
“Secondly, we believe the spin-out will pose challenges to the naked short sellers that have been selling our shares and not closing their share sales by delivery of the stock.”
The Golden Ivan property is located in British Columbia’s ‘Golden Triangle’, which is a major gold-producing region with current resources totalling 67 million ounces of gold, 569 million ounces of silver, and 27 billion pounds of copper.
In Chile, the Zulema Project spans 4,300 hectares in the country’s Third Region, 30km from Lundin Mining’s (TSX:LUN) Candelaria copper-gold mine. Meanwhile, the Tierra de Oro Project is located in the same region on the eastern flank of Chile’s coastal iron-oxide copper gold belt.
Power Nickel also owns additional mining concession in Chile related to the Hornitos, Pal Negro, and Tabaco properties.
Power Nickel is a Canadian exploration company focusing on developing the ‘high-grade’ nickel, copper, PGM, gold and silver Nisk project into potentially Canada’s next polymetallic mine.
Write to Aaliyah Rogan at Mining.com.au
Images: Power Nickel
