York Harbour set to spin out Nevada gold project
York Harbour Metals Inc. [YORK-TSXV, YORKF-OTCPK, 5Deo) is planning to spin out its non-core Plumas and Eldorado projects (collectively known as the Pheonix Gold Project) in Battle Mountain, Nevada. It said the plan will be presented to shareholders for approval at the company’s annual meeting on July 26, 2023.
If approved, York Harbour will distribute to its shareholders, common shares (each a NewCo share) of the new reporting issuer company, allowing shareholders to hold shares in both York Harbour and the new company.
The company said the proposed spin-out aims to unlock the value of the Pheonix Gold Project by enabling its independent development by a skilled and experienced management team.
Meanwhile, York will continue to focus on the development of the York Harbour copper-zinc-silver and Bottom Brook Rare Earth Elements project, both located in western Newfoundland.
The company recently launched a Phase 5.0 drill program at its York Harbour project. It said the drilling campaign is designed to continue testing the high-grade mineralization at a number of targets including the A zone, the K Zone area and the Pinnacle Lake target, as well as the No. 4 Brock target.
The phase 5.0 drilling campaign will feature a series of 13 to 20 holes covering 3,500 metres or more of diamond drilling, the company said. The four target areas are spread across a large area measuring 2,500 metres by 2,000 metres, areas that have been identified as potential base metal mineralized target with a lack of historic drill testing.
York Harbour is an exploration and development company with a focus on the York Harbour project, a past producing mine located 27 kilometres from Corner Brook, Nfld.
Previous phases of exploration completed by the company were designed to accomplish a number of key objectives, including confirmation of the historic Main Mine area with 254 documented drill holes, many of which did not have reported assay results. Another objective was to better understand the orientation of the copper and zinc-rich volcanogenic massive sulphide (VMS). A third objective was to begin testing for strike and dip extensions of the known mineralization. “All of these objectives were achieved, with excellent results,’’ the company has said.
The 2022 Phase 4.0 exploration program was designed to expand the company’s knowledge of the economic potential within the Main Mine area and elsewhere within the large 4,725-hectare property.
The initial part of the program aimed to test the depth extensions of he drill indicated VMS mineralization within the northeastern (A, D-G zones) and southwestern (H zone) parts of the Main mine area.
On May 3, 2023, York Harbour shares closed at 44 cents. The shares are currently trading in a 52-week range of $1.35 and 40 cents.