Power Nickel announces company will spinout non-core BC and Chilean projects
Vancouver
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July 21, 2023 01:00 PM Eastern Daylight Time
Power Nickel Inc CEO Terry Lynch joined Steve Darling from Proactive to share news regarding the company's strategic decisions.
The company has decided to transfer its non-core assets in British Columbia and Chile into a wholly-owned subsidiary. These projects, including Golden Ivan in BC and Zulema and Tierrade Oro in Chile, are focused on gold and copper exploration. The company will seek shareholder approval for the move at its upcoming annual general meeting in the fall.
The strategic decision allows Power Nickel to concentrate its efforts and resources on its flagship asset, the Nisk Nickel Project in Quebec.
Lynch explained to Proactive that the decision to create a wholly-owned subsidiary for the non-core assets will benefit Power Nickel shareholders. The new entity will be able to pursue growth opportunities independently and secure separate financing. It will also have its own CEO and Board, facilitating more focused and efficient management.
In addition, Power Nickel has announced its intention to sell its 3% royalty on the Copaquire Project, which is owned by Teck Resources. Teck has the option to buy the first 1% of the royalty for $3 million and has the right of first refusal in case of a royalty sale. While the long-term potential for the royalty remains promising, the company believes that selling it will reduce dilution at the Nisk Nickel Project and provide additional funding for exploration.
Power Nickel remains committed to maximizing value for its shareholders and believes that these strategic moves will help streamline its operations, enhance focus on the Nisk Nickel Project, and create opportunities for growth and exploration.
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