SEATTLE (Scrap Monster): Vancouver-based Nexus Gold Corp. announced its intent to spinout its existing Canadian assets, which includes the McKenzie Gold Project, located in Red Lake, Ontario and the Cyclone Gold-Nickel-Copper project, located in the James Bay region, Quebec.
In line with the above intent, the company will transfer all of its rights to its Canadian projects to Nexus Metals Corp.- a newly-established subsidiary of the company. Subsequent to this, a total of 45,390,465 shares of Nexus Metals will then be distributed on a pro rata basis to shareholders of the company. As per the arrangement, current shareholders will receive approximately 1 share of Nexus Metals for every 7 shares of the company held by them as of the record date for the spinout.
The spinout will help the company segregate its assets so as to ensure more focused marketing and financing opportunities. Accordingly, Nexus Metals will focus more on Canadian and North American projects, while the company will continue to develop its West African footprints.
Alex Klenman, CEO, Nexus Gold noted that the spinout offers the best course of action to pursue the next phase of development with its projects and that the company looks forward to execute the plan in the coming months.