Prospector Metals (TSXV: PPP) is streamlining its operations, moving away from the project generator model to bet the house on its flagship ML Project in the Yukon. The company announced a definitive agreement to sell off its non-Yukon assets to BeMetals Corp (TSXV: BMET) in a deal that effectively splits the company’s assets into two distinct exploration vehicles.
Under the terms of the agreement, Prospector will transfer its portfolio of Ontario and Newfoundland projects, including the Savant, Devon, Whitton, and Toogood properties, to BeMetals. In exchange, Prospector will receive 29.4 million shares, representing a 49.9% stake in BeMetals, which is slated for a rebranding as Lightning Resource Corp. following a 10-to-1 share consolidation.
Post closing, the refined Lightning Resource Corp is expected to be owned 49.9% by Prospector, and 28.4% by B2Gold, before a proposed distribution of the shares by Prospector.
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The strategic pivot is designed to strip away the distraction of secondary assets that management believes have been overshadowed by the high-grade discovery made at ML last year. By distributing the newly acquired Lightning shares directly to its shareholders, Prospector is offering its backers a two-for-one play: a pure-exposure bet on the Yukon and a fresh stake in a fresh, Canadian-focused gold explorer.
As a sign of the ongoing involvement of Prospector, Rob Carpenter, Prospector’s CEO, will serve as Chairman and interim CEO of the new entity. The board will also feature two directors from Prospector, along with Andrew Brown of B2Gold, Roger Richer of BeMetals, and Jay Suhir of Farris LLP. Clive Johnson meanwhile is expected to join the board in Q3.
“This transaction gives Prospector shareholders the opportunity to benefit from the entire project portfolio which has been largely overlooked due to our focus on the ML Project, Yukon. We are looking forward to working with the BeMetals team to create a new opportunity for shareholders through development of Canadian mineral projects,” commented Carpenter on the transaction.
Prospector Metals last traded at $1.47 on the TSX Venture.
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