Sitka Gold Corp. (TSXV: SIG) is going all-in on its RC Gold project in the Yukon. The company announced this morning a strategic plan to spin out its Nevada and Arizona gold and silver portfolio into a separate, discovery-focused entity. The move is designed to streamline operations as the company prioritizes the rapid advancement of its flagship RC Gold Project in the Yukon.
The reorganization, to be completed via a Plan of Arrangement, will see Sitka’s Alpha Gold property in Nevada and the Burro Creek Gold-Silver property in Arizona spun out into a new entity, which is expected to be later listed on either the TSX Venture or the CSE. The decision follows a period of significant resource expansion at the RC Gold Project, which management believes now requires dedicated technical and capital focus.
“The RC Gold Project has reached a stage where it warrants our full and undivided attention,” said Cor Coe, CEO of Sitka Gold. “At the same time, our Nevada and Arizona assets represent compelling exploration opportunities that merit a dedicated management team with a clear mandate to move them forward.”
By separating the assets, Sitka aims to provide the market with a pure-play vehicle centered on its Tombstone Gold Belt discovery. The RC Gold Project currently hosts an Indicated resource of 1.3 million ounces of gold and an Inferred resource of 3.8 million ounces.
The company is currently executing a fully funded, 60,000-meter diamond drilling program aimed at further expanding the Blackjack, Eiger, and Rhosgobel deposits. With a treasury exceeding $45 million and no debt, Sitka is positioned to aggressively move the project through technical studies.
The spin-out meanwhile aims to surface value from the company’s American holdings, which management suggests have been overshadowed by the Yukon’s growth.
- Alpha Gold (Nevada): Located along the Cortez Trend, the project sits approximately 40 km from the Barrick/Newmont Cortez Mine and targets Carlin-type mineralization.
- Burro Creek (Arizona): Features a historical estimate of over 200,000 ounces of gold with significant infrastructure advantages.
Upon completion of the arrangement, Sitka shareholders will receive shares in Newco proportional to their existing holdings. The new entity intends to apply for a listing on the TSX Venture Exchange or the Canadian Securities Exchange.
The transaction remains subject to shareholder, court, and exchange approvals. The current timeline suggests that the spinout will be completed after a special meeting of shareholders that will occur “in due course.” Further details are expected to be released in the future.
Sitka Gold last traded at $1.03 on the TSX Venture.
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