Golden Sky plans spin out of Yukon, B.C. projects
Golden Sky Minerals Corp. [AUEN.V] said it is planning to spin out its Bullseye, Argo and Eagle Mountain properties, plus $335,000 into its Thunderbird Minerals Corp. unit via a statutory plan of arrangement. The properties are located in British Columbia and the Yukon.
Under the terms of the arrangement, each existing common share of Golden Sky will be exchanged for one new common share of Golden Sky and 0.50 of a SpinCo share. Also, outstanding options and warrants will be adjusted or replaced so that upon exercise, holders will receive one new Golden Sky share and 0.50 SpinCo share for each option or warrant exercised.
Subject to approval of the spin out plan by shareholders and the Supreme Court, Golden Sky’s board will determine a trigger date for SpinCo to complete a financing by way of a private placement, rights offering or other means, and apply for a listing on the TSX Venture Exchange, or other exchange.
Golden Sky expects that the arrangement will increase shareholder value by allowing capital markets to ascribe value to the Bullseye, Argo and Eagle Mountain properties independently of the other properties held by Golden Sky. The company also said it believes that having a separately funded early-stage exploration business will accelerate development of the three properties.
Upon completion of the arrangement, it is intended that SpinCo will be managed by John Newell, as President and CEO, and Juciane Gomes as Chief Financial Officer.
Golden Sky is a well-funded junior grassroots explorer. Its drill ready projects include Hotspot, Bullseye, and Lucky Strike, all located in the Canadian Yukon. It added to its pipeline by acquiring the Rayfield copper-gold project in southern British Columbia, and staking the Eagle Mountain gold project in the Cassiar Gold District of northern B.C.
On December 15, 2022, Gold Sky shares closed at 20 cents and currently trade in a 52-week range of 45 cents and 14 cents.
Golden Sky recently said it has defined several highly prospective gold trends on the Eagle Mountain project. The company said ground-based field work included the collection of approximately 100 rock and 500 soil samples from four main zones selected as high priority exploration targets. The company said assay results were highly encouraging, with numerous rock samples returning anomalous gold values.
The rock sample returning the highest gold grade, a quartz-veined breccia with disseminated pyrite and stibnite with limonite and manganese oxide, assayed 2.8 g/t gold, 0.7% zinc, over 1.0% lead, 221 ppm. Copper, 0.2% antimony and over 1.0% arsenic.
The company said anomalous gold values in soils proved effective at delineating several gold trends interpreted to be gold-bearing quartz veins hosted in faults/or shears.