HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF). said it has filed a circular on its Plan of Arrangement which will be decided upon, among other matters, at the Annual General and Special Meeting on May 30, 2023, at 10:30 am Pacific Time.
The company said that in early 2023 it initiated plans to spin out its Canadian assets comprising its Ontario and Yukon exploration properties into a new Canada-focused exploration company, Onyx Gold, with HighGold shareholders receiving one share in Onyx Gold for every four HighGold shares they hold. When the spin-out is completed, Onyx Gold shares are expected to be listed on the TSX Venture Exchange. Onyx Gold also intends to complete a non-brokered private placement to fund work programs and to use for general working capital.
Onyx Gold intends to raise minimum gross proceeds of approximately C$5.0 million, consisting of approximately $2.0 million raised through the issuance of 4,000,000 units at a price of $0.50 per unit, and approximately $3.0 million raised through the issuance of 4,347,826 flow-through units at a price of $0.69 apiece.
Each unit will comprise one Onyx share and one-half of one Onyx share purchase warrant with each warrant exercisable to acquire one additional Onyx share at a price of $0.75 each for a period of 24 months following the closing.
The company also reported on the filing of an independent technical report on the Munro-Croesus Gold Project, Ontario.
HighGold is a mineral exploration company focused on high-grade gold projects located in North America. Its flagship asset is the high-grade Johnson Tract Gold-Zinc-Copper Project located in an accessible area of Southcentral Alaska, USA. The company also controls one of the largest junior gold miner land positions in the Timmins, Ontario gold camp. This includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Timmins South properties.
Contact the author at jon.hopkins@proactiveinvestors.com