Power Nickel Inc (TSX-V:PNPN, OTCQB:PNPNF) is proceeding with a spinout of its Golden Ivan property and certain Chilean assets to a new subsidiary, Chilean Metals, effective February 3.
The Canadian firm will continue advancing its Nisk polymetallic project in Quebec and will retain its royalty interest in the Chilean Copaquire project.
Chilean Metals will focus on the 797-hectare Golden Ivan property in Terrace, British Columbia, as well as its Chilean projects, including Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco.
If the arrangement takes place as planned at this time, Power Nickel shareholders recorded at the close of trading on January 31 will receive one new Power Nickel common share and 0.05 of a Chilean Metals share for each share they held before the effective time.
Following the spin-out, Power Nickel shares will continue trading on the TSX Venture Exchange, the OTC Market, and the Frankfurt Stock Exchange.
Chilean Metals shares will not be listed on any exchange but will remain a reporting issuer in British Columbia and Alberta.