Power Nickel Inc. has recently entered into an arrangement agreement for a strategic reorganization of its business, which involves spinning out its interest in the Golden Ivan property and certain Chilean exploration assets and liabilities to Power Nickel shareholders. The spin-out will be facilitated through Chilean Metals Inc., a wholly owned subsidiary of Power Nickel, known as Spinco. This move aims to provide investors with ownership stakes in two specialized companies, with Power Nickel focusing on the advancement of the Nisk project and Spinco concentrating on the Golden Ivan property and the Chilean assets.
The Golden Ivan property, situated in Terrace, British Columbia, encompasses 13 mineral claims covering a total area of 797 hectares. Spinco will also acquire Power Nickel’s interests in the Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco projects located in Chile. However, Power Nickel will retain its royalty interest in the Chilean Copaquire project.
The decision to spin out the Golden Ivan property and the Chilean assets is driven by the company’s belief that its shareholders are not currently benefiting from these properties. The strategic reorganization aims to unlock value for Power Nickel shareholders. However, the private nature of the spin-out, with Spinco initially not seeking a stock exchange listing, may pose challenges for non-declared holders of what Power Nickel believes to be a naked short position.
According to the Company’s MD&A, the Golden Ivan property has shown promising mineralization potential. It is located in the Golden Triangle, known for its significant mineral resources, including 67 million ounces of gold, 569 million ounces of silver, and 27 billion pounds of copper. Recent exploration efforts have resulted in the discovery of two high-grade gold zones, with samples yielding 16.2 grams-per-tonne (g/t) gold and 15.1 g/t gold.
In addition to the Golden Ivan property, Power Nickel’s Chilean assets, such as Zulema and Tierra de Oro, have shown exploration potential. The Zulema project, in particular, has exhibited IOCG-style mineralization, with drill holes indicating the presence of copper, iron, and gold. The company has also conducted geophysical surveys to identify key target areas for further exploration.