York Harbour Metals, a British Columbia-based mining company, is planning to spin-out its non-core assets.
These assets include the Plumas and Eldorado Projects, together referred to as the Phoenix Gold project, in the Battle Mountain mining district in Nevada, US.
The proposal is to be presented to its shareholders for clearance at the upcoming annual general and special meeting.
If the proposal is approved, York Harbour metals will distribute the shares in such a way that the shareholders will be able to own its shares as well as the new company’s shares.
The company now plans to focus on its two projects located in western Newfoundland and Labrador, Canada, the copper-zinc-silver project and the Bottom Brook rare earth elements project.
It intends to unlock the value of the Phoenix gold project by enabling the independent development of a management team through the spin-out.
Details related to the opportunities and merits of the spun-out assets will be revealed later, the company stated.
The spin-out awaits approval from the Supreme Court of British Columbia and TSX Venture Exchange along with shareholders.
The new company is expected to increase value for shareholders by allowing capital markets to ascribe value to the project independently of York’s other properties.
Once approved, the shareholders of York Harbour will receive shares in the new company based on a specific ratio of existing shares in York. These details will be announced at a later date.
Last month, York Harbour started drilling at the Pinnacle Target on its copper-zinc-silver project in Newfoundland and Labrador.
It is the first drilling at the location and is considered to be a milestone for the company.
Pinnacle Target is considered to have a high potential for high-grade copper, zinc and silver mineralisation.
It was identified to have a large anomaly, which was confirmed by geophysical surveys and geological mapping, but a drill-test was never performed.