Falcon Gold Corp (TSX-V:FG, OTC:FGLDF) has announced its intention to spin out certain of its mineral claims in Argentina into a wholly-owned subsidiary called Latamark Resources Corp.
The company said the spin-out deal was designed to create value for Falcon Gold shareholders by allowing Latamark to focus exclusively on the activities required to exercise the option on the Esperanza project, which includes seven exploration concessions covering 11,072 hectares in the Sierra de Las Minas District of Argentina's southern La Rioja province.
Falcon Gold CEO Karim Rayani said the spin-out would enable the company to expand into new jurisdictions while allowing Falcon to focus on its Canadian portfolio.
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“We fully expect Latamark to become a platform for other exploration projects in the region adding to the value proposition. We look forward to an aggressive launch in South America,” Rayani said.
The board of directors of Latamark will initially be comprised of Karim Rayani and Fraser Rieche, with the management team consisting of Karim Rayani as chairman and CEO and Geoff Balderson as chief financial officer and secretary.
Falcon Gold told shareholders that there would be no change in their holdings in Falcon Gold as a result of the arrangement and that it was anticipated they will be entitled to receive one share of Latamark for every 3.5 common shares held.
The transaction is subject to TSX Venture Exchange, regulatory and court approval, in addition to shareholder approval by no less than two-thirds of the vote case at its upcoming annual general meeting to be held in July 2022.
Falcon Gold is a Canadian mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas.
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