Blackrock Gold Corp (TSXV: BRC) is looking to unlock some value for shareholders. The company announced this morning that it intends to spin out its former flagship property, Silver Cloud, into a new public issuer. The move comes as recent discoveries at Tonopah West have resulted in the company refocusing its current exploration efforts.
The intent of the spinout is for the company to better realize value for its shareholders from its current assets. CEO Andrew Pollard comments, “we don’t believe the market is fully valuing the sum of our parts and we see this as the ideal solution to ensure both projects get the attention and command the valuation of which they deserve, with purpose-built teams for each.”
Under the proposed spinout, shareholders would receive one share of the spinout firm for each three shares held of Blackrock Gold on the date of record. Shares issued for the spinout would be subject to resale restrictions, with 25% of the shares available for free trading, and a further 25% unlocking quarterly.
The proposed transaction is still subject to a number of conditions, such as financial analysis and determination of structure. Blackrock has also commented that it intends to provide certain funding to the project to enable it to proceed forward successfully.
A timeline for completion has not been provided.
Blackrock Gold Corp last traded at $ on the TSX Venture.
Information for this briefing was found via Sedar and Blackrock Gold Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The Grocery Grift: Why Toronto and New York Are About to Light Taxpayer Money on Fire