Spruce Ridge Announces Dividend Of Canada Nickel Company Shares
Spruce Ridge Resources (TSXV: SHL) this week announced that it will be conducting a one-time dividend for shareholders of the company on record at the close of business on July 6, 2020. The dividend will be in the form of common shares of Canada Nickel Company (TSXV: CNC).
Under what the company has described as a “dividend in kind,” Spruce Ridge will distribute a total of 2,500,000 common shares of Canada Nickel to its shareholders. The company currently holds 10,600,000 common shares as a result of the sale of its interest in the Crawford Nickel-Cobalt Sulphide Project, located near Timmins, Ontario. Following the Spruce Ridge dividend, the company will continue to hold 8.1 million common shares of the issuer.
Under the terms of the dividend, one Canada Nickel Company share will be issued for every 45.36 Spruce Ridge shares held at the close of market on July 6, 2020. Based on Canada Nickel’s current share price of $0.86 per share, it essentially equates to a dividend of $0.0189 per share of Spruce Ridge at current price levels. The distribution is to be made on August 28, 2020.
Canada Nickel Corp’s main project is the Crawford Nickel-Cobalt Sulphide project, near Timmins, Ontario. The company announced earlier this week that infill drilling conducted on the Main Zone provided results of 0.42% nickel over 306 metres.
Spruce Ridge Resources last traded at $0.07 per share on the TSX Venture. At the time of writing, this equates to an effective dividend yield of approximately 27% based on current pricing. Naturally, this yield estimate is subject to change based on share price movement while also being a one-time dividend.
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