G2 Goldfields tables update on asset spin-out plan
G2 Goldfields Inc. [GTWO-TSXV, GUYGF-OTCQX] has released an update on its plan to spin-out non-core assets into a new company to be named G3 Goldfields Inc., a move that will allow the company to focus on its Oko project in Guyana.
The company said shareholders will be asked to approve, the proposed spin-out at a meeting on January 28, 2025. The company said the proposed spin-out will be completed by way of a plan of arrangement. Following completion, none core assets held by G3 will consist of five Guyana properties, including Tiger Creek, the Peters Mine property, Aremu Mine property, Amsterdam Option and Aremu Partnership (including the historic Wariri Mine).
On Friday, G2 shares rose 2.38% or $0.05 to $2.15. The shares currently trade in a 52-week range of $2.39 and 57 cents.
G2 Goldfields said it believes its current share price does not fully recognize the value of the non-core assets, and that by completing the proposed spin-out, shareholders will benefit from unlocking the value of those assets.
Under the terms of the proposed spin-out plan, each shareholder will receive one G3 share for every two shares of G2 held as of the effective date of the arrangement. It is intended that G3 shares will be listed on a recognized Canadian stock exchange.
G2 Goldfields is headed by a team of professionals who have been directly responsible for previous gold discoveries in Guyana, including the funding and development of the Aurora Gold mine, Guyana’s largest gold mine.
The OKO project is located in the southeastern portion of the Guyuni Mining District, approximately 120 kilometres west-southwest of Guyana’s capital city, Georgetown, and directly north of Reunion Gold Corp.’s [RGD-TSXV] Oko West project.
OKO is accessed by a combination of boat and truck, using rivers and logging roads, from the town of Bartica and the Itaballi crossing on the Mazaruni River.
The company said five discrete, multi-kilometre long zones of gold mineralization have been delineated by soil sampling and mapping of historical and current artisanal mining operations.
In April, 2024, G2 announced an updated mineral resource estimate for the Oko property. Highlights included total combined open pit and underground resources for the Oko Main Zone, which stand at 495,000 ounces in the inferred category (2.4 million tonnes at 6.38 g/t gold), and 686,000 ounces in the indicated category (2.37 million tonnes at 9.03 g/t gold).
The Ghanie Zone is estimated to contain an inferred resource of 604,000 ounces (12.2 million tonnes at 1.54 g/t) and an indicated resource of 236,000 ounces (3.34 million tonnes at 2.20 g/t gold).
The company said it is worth noting that the updated resources lie within 500 metres of surface. An updated resource estimate is targeted for the first quarter of 2025.
The Oko district has been a prolific alluvial goldfield since its initial discovery in the 1870s, and modern exploration techniques continue to reveal the considerable potential of the district, GS has said.