Sitka Gold Corp. has initiated plans to spin out its Alpha Gold property in Nevada and its Burro Creek gold-silver property located in Arizona into a new discovery-focused exploration company to be named at a later date.
The primary objective of the proposed spin-out is to allow Sitka Gold’s management team to maintain a clear and singular focus on advancing its flagship RC Gold project in the Yukon Territory, Canada, while establishing a separate, dedicated management team to unlock the value of the company’s American gold and silver assets.
“The RC Gold project has reached a stage where it warrants our full and undivided attention as we aim to rapidly advance the project through continued resource expansion and technical studies,” said Cor Coe, director and CEO of Sitka Gold.
“At the same time, our Nevada and Arizona assets represent compelling exploration opportunities that merit a dedicated management team with a clear mandate to move them forward and unlock the value of those very prospective properties. The proposed spin-out is intended to create two focused companies, each with the leadership, capital structure and strategic clarity required to maximize value for shareholders.”
Sitka intends to complete the spin-out by way of a plan of arrangement and apply for the listing of the new company on the TSX Venture Exchange or the Canadian Securities Exchange.
Source: Sitka Gold