Tocvan Ventures Corp. (CSE:TOC) said it has executed an assignment agreement to sell its Rogers Creek project in British Columbia to Cascade Copper Corp so it can focus on its core assets in Mexico.
The company said the transaction consists of the sale of Rogers Creek in exchange for 5 million common shares of Cascade Copper, which will be distributed to Tocvan shareholders. Cascade Copper is a private Alberta company that intends to complete an initial public offering and list its common shares on a Canadian exchange later this year.
“Completing this transaction means we can unlock the value of the Rogers Creek asset to our shareholders and ensure it has the focus it deserves through Cascade Copper," Tocvan CEO Brodie Sutherland said in a statement. "We are excited about the potential of Cascade Copper and the new management behind it.”
READ: Tocvan Ventures says drilling at Pilar Gold-Silver project continues to reveal high-grade gold mineralization
“This also allows Tocvan to focus on its core assets in Sonora, Mexico where we have seen tremendous growth over the past two years,” Sutherland added.
Tocvan noted that its board of directors has set May 31, 2022, as the record date for the dividend of 5 million common shares of Cascade Copper to be distributed to shareholders. While the distribution of the Cascade Copper common shares was originally structured as a spin-out transaction via a plan of arrangement, it said management decided the sale of the Roger's Creek under the agreement was a more cost-effective approach to distributing the Cascade Copper common shares to shareholders.
The company explained that each Tocvan shareholder of record as of the close of business on May 31, 2022, will receive, on the distribution date, one common share of Cascade Copper for every 6.5384044 common shares held in Tocvan. The share dividend is expected to be distributed to shareholders on or about the time that Cascade Copper completes its initial public offering.
Tocvan said no action is required by shareholders in order to receive the common shares of Cascade Copper in the dividend distribution.
Tocvan Ventures is a well-structured exploration development company created to take advantage of the prolonged downturn in the junior mining exploration sector, by identifying and negotiating interest in opportunities where its management feels they can build upon previous success.
The company is earning 100% on two exciting opportunities in Sonora, Mexico - the Pilar gold-silver project and the El Picacho gold-silver project. Its management feels both projects represent tremendous opportunity to create shareholder value.
At Pilar, results for four drill holes are pending. A phase III program was initiated to define the extent of the established Main zone while continuing to explore several new prospective trends including 4-T. Advanced metallurgical studies are underway for bulk material across the property, and will evaluate the recovery of gold and silver across mineralized oxide zones exposed at surface.
At El Picacho, surface exploration mapping and sampling have been continuing to define future trench and drill targets.
Contact the author at stephen.gunnion@proactiveinvestors.com