Nickel | Power Nickel Plans a Spin-off to Focus on Nickel Mine Development in Canada

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Nickel | Power Nickel Plans a Spin-off to Focus on Nickel Mine Development in Canada

Date：2024-12-10

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Keyword tags： Nickel Cobalt N.America

Recently, Canadian mining company Power Nickel Inc. (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV), which is traded on the Canadian, American, and Frankfurt stock exchanges, announced that its shareholders have approved the previously announced plan to spin off the interests in the Golden Ivan project area and Chilean mining exploration assets.

Under this plan, the company's interests in the Golden Ivan project area, as well as exploration assets and liabilities in Chile, will be spun off to shareholders who hold common shares in the company through Power Nickel's wholly-owned subsidiary Chilean Metals Inc. (referred to as "Spinco" or "Chilean Metals").

The resolution was approved at the company's shareholder meeting on November 22, 2024. Additionally, on November 27, 2024, the plan received approval from the Supreme Court of British Columbia. Subject to the satisfaction or waiver of the remaining customary closing conditions, including final approval from the TSX Venture Exchange ("TSXV"), Power Nickel's spin-off plan will become effective as soon as January 31, 2025.

After the spin-off is completed, the new shares of Power Nickel will continue to trade on the Toronto Stock Exchange in Canada, the OTC Market in the United States, and the Frankfurt Stock Exchange in Germany.

This business split will result in two separate companies: Power Nickel, which will focus on the Nisk project in Canada, and Spinco, which will focus on advancing the Golden Ivan project and Chilean assets.

The newly spun-off Power Nickel company will focus on the Nisk project located in Canada, developing high-grade polymetallic minerals such as nickel, copper, cobalt, palladium, and platinum. The company acquired 80% interest in the Nisk project in 2021 from Critical Elements Lithium Corp. (CRE: TSXV). The NISK project, stretching 20 kilometers, possesses high-grade mineral segments of nickel, copper, cobalt, palladium, platinum, gold, and silver. The Nisk project is expected to be developed as Canada's first high-grade carbon-neutral nickel mine project.

Spinco, which holds the interests in the Golden Ivan project area and Chilean mining exploration assets, will no longer be listed on any stock exchange and will only comply with the relevant laws of British Columbia and Alberta, Canada. The Golden Ivan project area is located in Terrace, British Columbia, Canada, and consists of 13 mining claims covering a total area of 797 hectares. Spinco will also acquire the company's mining rights in silver, lead, zinc, gold, and copper in the Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco projects located in the Golden Triangle region of Chile.

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