The board of directors of Manitou Gold has approved the strategic reorganisation of its assets, with the proposed spin out of its nickel/cobalt/platinum group element (PGE) commodities from its Goudreau project, in northern Ontario, into a new subsidiary.
The spin-out, to be named Western Nickel, would be listed on a Canadian stock exchange and a portion of the shares would be distributed directly to the shareholders of Manitou.
The spin-out would allow Manitou to continue as a gold-focused exploration company. The decision followed the company’s recent success in demonstrating the broad untested potential for significant nickel mineralisation within the Goudreau project.
Manitou will embark on a new 1 000-m drill programme as a direct follow-up to the recent drill intersection of 0.25% nickel over 48 m at Goudreau.
“The spin-out of Western Nickel by Manitou will be very positive for all shareholders of the company,” said president and CEO Richard Murphy.
“Our shareholders will receive new shares of a pure nickel/cobalt/PGE company for no additional consideration, as well as a continued indirect interest in Western Nickel through the interest to be retained in the spun-out company by Manitou. As a result, they will benefit from the upside potential of both a gold-focused company, as well as a nickel/cobalt/PGE company – all within the 366 km2 Goudreau project.”
It is currently anticipated that the spin-out will be effected by way of a plan of arrangement, and that Manitou will retain up to 19.9% of the Western Nickel shares issued and outstanding at closing. However, the company said that the final terms of and determination to proceed remained subject to further tax and securities considerations,