TSX-V-listed KORE Mining has announced plans to transfer all its British Columbia gold exploration assets into a newly incorporated company, Karus Gold, which has a 1 000 km2 land position in the Cariboo gold district.
Following the spin-out, 100% of Karus Gold common shares will be distributed to KORE shareholders on a prorata basis to their KORE holdings.
Karus Gold will not initially be listed on a public stock exchange but will operate as a reporting issuer in British Columbia and Alberta.
In early 2021, Karus Gold intends to conduct a rights offering to all Karus shareholders to initially capitalise the company, followed by a planned public stock exchange listing in the first half of 2021.
Karus Gold would have the advantage of the ongoing drilling at Gold Creek and results from the completed FG Gold drill programme expected to be released through the first quarter of 2021.
Upon completion of the spin-out, KORE will continue as a gold company with a focus on growing and developing the Imperial and Long Valley gold projects, in California.
KORE says its largest shareholder, Eric Sprott, supports the transaction.