- Power Nickel (TSXV:PNPN) shareholders approved a spin-out of its Golden Ivan property and Chilean exploration projects into a new entity, Chilean Metals
- The Supreme Court of British Columbia granted final approval for the arrangement, which is expected to take effect on January 31, 2025
- Power Nickel will prioritize its Nisk project, while the spin-out entity will advance Golden Ivan and the Chilean assets
- Shareholders will receive shares in both Power Nickel and Chilean Metals following the spin-out
Power Nickel (TSXV:PNPN) has secured shareholder approval for a strategic spin-out of its Golden Ivan property and Chilean exploration assets into a new entity, Chilean Metals.
The decision, approved by 96.81 per cent of shareholder votes on November 22, 2024, marks a significant step in the company’s growth strategy. The Supreme Court of British Columbia granted a final order on November 27, enabling the plan to move forward.
Power Nickel will continue advancing its Nisk project, a promising nickel-copper-polymetallic venture in Quebec, while Chilean Metals will focus on developing the Golden Ivan property in British Columbia and several projects in Chile. These assets include Zulema, Tierra de Oro, Palo Negro, Hornitos and Tabaco. Power Nickel will retain a royalty interest in the Copaquire project.
Terry Lynch, Power Nickel’s chief executive officer, emphasized the potential for value creation through the spin-out, stating that “this arrangement unlocks unrealized value in our assets while enhancing focus on our flagship Nisk project. Additionally, it addresses concerns about trading imbalances, including evidence of naked short-selling.”
The arrangement, expected to take effect on January 31, 2025, will provide shareholders with one new Power Nickel share and 0.05 of a Chilean Metals share for every existing Power Nickel share. The transfer agent, Endeavor Trust, will oversee the share exchange process. Chilean Metals will remain a reporting issuer in Canada but will not be publicly listed.
The spin-out aligns with Power Nickel’s broader vision of creating distinct value streams for shareholders. As Lynch noted, “2024 has been a remarkable year, and we anticipate even greater success in 2025.”
About Power Nickel
Power Nickel is a Canadian exploration company focused on advancing its flagship Nisk Project, a high-grade nickel, copper and polymetallic deposit located in Quebec. With a strategic emphasis on critical minerals essential for the green energy transition, Power Nickel aims to become a leading producer of nickel and other valuable resources. The company also holds significant land packages in British Columbia and Chile, which include gold, silver and base metal assets.
Power Nickel stock (TSXV:PNPN) is up by 1.32 per cent trading at C$0.77 per share as of 12:08 pm ET. The stock has added 208 per cent year-over-year.
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(Top photo of Power Nickel’s core sample drill in action: Power Nickel)
