Uranium explorer NexGen Energy Ltd (CVE:NXE) is to spin off and list its 76%-owned subsidiary IsoEnergy.
The split will be effected through a merger between IsoEnrgy and unlisted company AireSurf Networks Holdings after which the new entity will list on the Toronto Venture Exchange.
Private and broker placements have already raised C$8.2mln gross in funds for the new company, to be called IsoEnergy, which will use the cash to explore the Radio, Thorburn Lake Project, Madison, 2Z and Carlson Creek properties, all of which were transferred to it by Nexgen.
Craig Parry will be the chief executive with other Nexgen directors making up the rest of the board. Nexgen will retain a 76% stake.
Leigh Curyer, NexGen’s chief executive, said: "We are thrilled to create IsoEnergy which will drill the prospective Eastern Athabasca Basin properties without distracting from our technical, management and financial focus on Arrow.
“IsoEnergy will employ the same disciplines that have made NexGen a success but with its own experienced management team and capital.
“We now look eagerly forward to the upcoming drilling season and what it may hold for IsoEnergy and NexGen shareholders."