Starcore International Mines (TSX:SAM) is assigning its rights, titles, and interests over its African assets to wholly owned subsidiary EU Gold Mining to advance exploration efforts at its Côte d’Ivoire projects.
Once EU Gold is the new owner of the 1,393km2 of landholdings in Côte d’Ivoire in West Africa, including the exploration permit for the Kimoukro Gold Project, the company will seek a separate listing in Canada.
On a pro-rata basis, EU Gold will issue Starcore 33.43 million shares to distribute between shareholders, subject to shareholder and regulatory approvals.
CEO Robert Eadie says the spin out will provide Starcore the opportunity to focus on gold and silver production from its Mexican assets, while EU Gold prioritises the development of the African properties.
“The goal is to maximise shareholder value, while allowing each company to focus and develop its major asset,” Eadie says.
EU Gold intends to attract new management for these properties that is local and specialises in African diplomacy and culture.
Starcore International Mines is a precious metals producer with its footprint extended across Côte d’Ivoire, Mexico, and the US.
Write to Maddison Elliott at Mining.com.au
Images: Starcore International Mines
