Power Nickel has secured shareholder and court approval for the spin-out of its Golden Ivan property in British Columbia and Chilean assets.
The arrangement involves shareholders receiving common shares in new entity Chilean Metals (Spinco).
The spin-out, subject to TSX Venture Exchange approval, is due to be effective from 31 January 2025.
At the annual general and special meeting on 22 November 2024, 96.81% of Power Nickel shareholders voted in favour of the arrangement.
The spin-out creates two specialised companies – Power Nickel, focused on the Nisk project, and Spinco, advancing the Golden Ivan property in British Columbia and Chilean assets.
Spinco will also acquire interests in several Chilean projects while Power Nickel will retain its royalty interest in the Chilean Copaquire project, ensuring continued involvement in the region’s mining activities.
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Other matters, including the stock option plan for Spinco, were approved as recommended by management.
On 27 November 2024, Power Nickel secured a final order from the Supreme Court of British Columbia, fulfilling a key condition for closing the arrangement. The company anticipates final approval from the TSX Venture Exchange soon.
Upon completion, Power Nickel shareholders will receive one new common share of Power Nickel and 0.05 of one Spinco share for each Power Nickel share held.
The company released a statement: “We are pleased the shareholders and the court have approved the arrangement, which we believe will create value in two primary ways for our shareholders.
“First, we believe the spin-out properties have significant unrealised value that is lost in the current structure. We believe Chilean Metals can advance our key projects in Chile and in British Columbia and create considerable value that is not being seen as investors correctly focus on our exiting polymetallic discovery at Nisk.
“Secondly, we believe the spin-out will pose challenges to the naked short sellers that have been selling our shares and not closing their share sales by delivery of the stock. We are committed to maintaining transparency and integrity in the financial markets, and currently conducting a thorough investigation into certain trading activities and will provide evidence of malfeasance by naked short sellers.“
Post-arrangement, New Power Nickel shares will continue trading on the TSX Venture Exchange, OTC Market in the US and Frankfurt Stock Exchange in Germany.
Spinco shares will not be listed but will be a reporting issuer in British Columbia and Alberta.
