Nevada King Gold Slated To Spinout Non-Core Assets On August 1
Nevada King Gold (TSXV: NKG) is evidently in a hurry to spin out its non-core assets. After announcing in June that it had a plan for a strategic reorganization, the company a month later has already obtained a final order from the Supreme Court of British Columbia approving of the plan of arrangement.
The arrangement will see all assets of Nevada King, except for its flagship Atlanta Gold Mine Project, spun out into a new entity. As part of the transaction, a 3.0% net smelter return royalty will be issued to SpinCo that covers all gold and silver production from the Atlanta project, including both the resource area and non-core claims that surround the project.
SpinCo is expected to be the third largest mineral claim holder in Nevada following the close of the transaction, after Nevada Gold Mines and Kinross Gold.
The spinout was previously approved by over 96% of shareholders.
With the approval from the Supreme Court of British Columbia in hand, the spinout is expected to become effective as of August 1, 2024. Shareholders of record as of the close of trading on July 31 will receive one common share of Nevada King and 1/13 of a common share of SpinCo for every share held.
Nevada King Gold last traded at $0.355 on the TSX Venture.
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