G2 Goldfields releases new update on Guyana spin-out plan
G2 Goldfields Inc. [GTWO-TSXV, GUYGF-OTCQX] has released an update in relation to a previously announced plan to spin-out G3 Goldfields Inc, a move that will allow G2 to focus on its Oko project in Guyana.
The update comes after the company released assay results from a new discovery initially announced in March, 2025, which lies 10 kilometres north of its existing gold resources at the Oko-Ghanie deposit (1.5 million ounces indicated at 3.40 g/t gold and 1.6 million ounces inferred at 2.48 g/t gold). Multiple gold targets are currently being explored along a prominent 15-kilometre trend, extending north from the Oko-Ghanie deposit.
G2 currently holds exploration rights to 83,967 acres in the district, and the new Oko Discovery Area represents the third significant discovery on the company’s holdings.
Meanwhile, following a review of its property portfolio, G2 said it intends to spin-out its non-core properties and an amount of cash to be determined to G3 by way of a plan of arrangement under the Canada Business Corporations Act, and subject to the terms and conditions of an arrangement agreement to be entered into by the company and G3.
The non-core assets to be transferred to G3 will consist of six Guyana properties, including Tiger Creek, the Peters Mine property, Aremu Mine property, Aremu Partnership (including the historic Wariri Mine), Property A Region 7 (5,457 acres) and Property B, Region 7 (20,739 acres).
On Thursday, G2 shares eased 0.14% or $0.005 to $3.52. The shares currently trade in a 52-week range of $3.68 and 45 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. Only G2 shareholders as of the close of business on the effective date of the arrangement will be entitled to shares of G3 upon closing of the arrangement.
Because the non-core assets have changed from what was contemplated when the spin-out of the G2’s assets were approved by G2 shareholders in January 2025, the company intends to seek shareholder approval of the proposed spin-out at an annual general and special meeting of shareholders to be held by November 27, 2025.
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.