Sassy Resources (CSE:SASY, OTCQB:SSYRF) Corporation said its board of directors has approved a dividend spinout of 8.83 million shares in Gander Gold Corporation, the company's wholly-owned subsidiary.
The number of shares issued represents a complete settlement of debts outstanding between Gander and Sassy, associated with the acquisition of Sassy’s Newfoundland exploration properties.
“The planned dividend spinout of over 8.8 million Gander shares to our Sassy shareholders represents the first quantifiable delivery of value to our shareholders resulting from our strategic early move into Newfoundland and should represent a material premium to Sassy’s share price,” said Mark Scott, CEO of Sassy Resource Corporation in a statement.
READ: Sassy Resources updates ongoing exploration work in BC and Newfoundland
Currently, Sassy has 47.53 million shares issued and outstanding. The upcoming dividend distribution move would represent a ratio of one Gander share for every 5.38 Sassy shares owned by Sassy shareholders as of February 1, 2022.
The Vancouver-based company is in the final stage of preparing its application for listing Gander on the Canadian Stock Exchange (CSE). Once done, Gander will have 71.39 million shares issued and outstanding with no share purchase warrants outstanding.
After the spinout, Sassy will maintain ownership of 35.33 million shares of Gander, which amounts to at least 49.5% of the company.
“We have been very effective at managing Sassy’s share structure as well as Gander’s while building for our investors a compelling portfolio of grassroots properties in Newfoundland covering 2,257 square kilometres (eight separate projects),” the Sassy CEO added.
He noted that the initial work has been very promising with Gander Gold “on track in management’s view to become a leading and well-financed Newfoundland discovery opportunity when it comes to trade.”
Results from the ongoing early-stage exploration program in Newfoundland are pending.
Sassy’s flagship Foremore project situated in Northwest British Columbia’s Eskay Camp recently completed its 2021 field exploration program, and the results are pending. The company is currently focused on identifying, acquiring, and exploring precious and base metals in North America.
Contact Ritika at ritika@proactiveinvestors.com