Nevada King Gold Corp. (TSXV: NKG) (OTCQX: NKGFF) is unloading all of its non-core concessions onto a spinout company made from one of its subsidiaries.
The company announced on Friday that it received the final nod from the Supreme Court of British Columbia for the formation of the spinout company.
All of the company’s concessions and properties, excluded those of the Atlanta Gold Mine Project, will go with the new company. This allows Nevada King to focus primarily on developing the project.
Additionally, the deal includes giving the new company a 3 per cent net smelter return royalty (NSR) on all gold and silver production from Atlanta. This deal also includes the Atlanta resource area and non-core claims around the Atlanta project.
Nevada King’s Atlanta Gold Mine Project is situated in Lincoln County, Nevada, within the prolific and historic Atlanta Mining District. The project focuses on exploring and developing the Atlanta Gold Mine. Furthermore, the mine has demonstrated significant potential for both gold and silver resources.
The company is using modern exploration techniques and historical data to optimize resource identification and extraction. The project area is known for its favourable geology, including extensive mineralization and promising drill results, positioning the Atlanta Gold Mine Project as a key asset in Nevada King’s portfolio, aimed at contributing to the state’s rich mining legacy.
Image via Nevada King Gold.
Read more: Calibre Mining’s Valentine Mine in Newfoundland nearly complete
Read more: U.S. Gold to present at New York’s Current Trends in Mining Finance Conference
Arrangement receives overwhelming shareholder approval
Nevada King shareholders approved the arrangement with 96.3 per cent vote at their annual and special meeting earlier this month. If the arrangement takes effect in August, Nevada King shareholders who hold shares will receive one new Nevada King common share and one-thirtieth of one SpinCo common share for each common share they hold.
This shareholder approval displays confidence in Nevada King’s strategic direction and the potential value creation from the arrangement.
In addition to Nevada King, several other prominent companies are actively engaged in Nevada’s thriving gold mining sector.
For example, US Gold Corp (NASDAQ: USAU) is advancing its Keystone and Maggie Creek projects, targeting significant gold deposits in the Battle Mountain-Eureka and Carlin Trends, respectively.
Meanwhile, Calibre Mining (TSX: CXB) (OTCQX: CXBMF) has made substantial investments in the state. These include its acquisition of the Pan and Gold Rock projects, enhancing its portfolio of high-quality gold assets.
.
Calibre Mining and US Gold are sponsors of Mugglehead news coverage
.
Follow Joseph Morton on Twitter
joseph@mugglehead.com
