TSX-V-listed KORE mining has successfully spun out its Cariboo gold district exploration assets into Karus Gold, which will focus on the FG Gold and Gold Creek projects in British Columbia.
KORE CEO and Karus director Scott Trebilcock said on Monday that the company was well positioned with a large 1 000 km2 land position.
“Karus Gold is strongly positioned to attract capital and generate value for shareholders. We are excited to see Karus Gold's assets exposed to the valuation forces of a pure play explorer,” he commented in a statement.
Karus would proceed to raising seed capital in a rights offering and Trebilcock added that it was a rare opportunity for shareholders to access seed round financing usually reserved for industry insiders.
Karus plans to list its shares on the TSX-V later in the first half of 2021, subject to regulatory approvals.
Pursuant to the arrangement, the owners of common shares of KORE would receive one-half of a common share of Karus and one new common share of KORE, for every common share of KORE held at the close of business on January 22, 2021.
Investor Eric Sprott owns 26% of Karus' basic shares.