Highgold Mining shareholders approve Onyx Gold spinout
At the annual general and special meeting of Highgold Mining Inc. [HIGH-TSXV; HGGOF-OTCQX] held May 30, 2023, the shareholders of Highgold approved the proposed plan of arrangement involving Highgold and its wholly owned subsidiary, Onyx Gold Corp. For details regarding the arrangement, see the news releases of the company dated May 24, 2023, March 17, 2023, and February 22, 2023.
At the meeting, the special resolution approving the arrangement was overwhelmingly approved by 99.56% of the shareholders present in person or represented by proxy. Accordingly, shareholder approval for the arrangement has been obtained.
The arrangement is expected to become effective about June 6, 2023, subject to, among other things, Highgold obtaining a final order from the Supreme Court of British Columbia in respect of the arrangement and final acceptance by the TSX Venture Exchange of the arrangement and other conditions customary in transactions of this nature.
All Highgold shareholders as of the effective date will receive one common share in the capital of Onyx Gold for every four common shares held in the capital of Highgold.
Further to its news release dated May 24, 2023, due to strong demand, the company intends to upsize the Onyx Gold concurrent financing to $7-million, consisting of units and flow-through units for Onyx Gold. The company expects to apply to list the common shares of Onyx on the TSX Venture Exchange and expects to close the concurrent financing concurrent with listing, which will be subject to the receipt of TSX-V approval.
Highgold’s flagship asset is the high-grade Johnson Tract gold-zinc-copper project located in accessible south-central Alaska. The company also controls one of the largest junior gold miner land positions in the Timmins, Ontario, gold camp. This includes the Munro-Croesus gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Timmins South properties. Highgold also has 100% ownership of a group of properties in Yukon’s emerging new Selwyn basin reduced intrusive-related gold district.