Solaris Resources (TSX: SLS) is evidently looking to monetize some of its assets while providing a degree of return for its shareholders. The mid-stage explorer this morning announced its intention to spin out what it has deemed to be non-core assets.
The spin out will see the creation of a new firm, titled Solaris Exploration Inc, with the new firm to see assets transferred to it following an internal re-organization. The firm will hold assets in Ecuador, Peru, Chile, and Mexico, which is claimed will provide shareholders with long-term value.
It is currently expected that Solaris Exploration will see 100% of its shares spun out to current shareholders of Solaris Resources, following the approval by a majority of investors. Once spun-out, the new firm is to be listed on the public markets.
Solaris Resources is expected to predominantly retain its Warintza Project in southeastern Ecuador, which is a copper and gold project that currently has a high grade resource.
Solaris Resources last traded at $12.80 on the TSX.
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