As it looks to advance its two development projects in California, KORE Mining has announced plans to spin out its B.C. exploration holdings to
Karus Gold, a new corporation.
As part of this transaction, all of the Karus common shares would be distributed to KORE shareholders on a pro-rata basis to their ownership in the parent company. Karus will initially operate as a reporting issuer in B.C. and Alberta, ahead of a rights offering planned for early 2021, which would then be followed by a public stock exchange listing in the first half of 2021.
According to the release, the spin-out transaction is expected to allow KORE shareholders to “realize the expected growth and returns from exploration investment.”
Dominant 1,000 km
2 land position in the emerging Cariboo Gold District with Osisko Development Corp (TSX:ODV) investing heavily to the north
Flagship FG Gold project open for growth after 2020 Lower Zone discovery intercepts of:
10.0 meters of 3.9 g/t gold at 237 meters downhole
14.3 meters of 6.4 g/t gold at 386 meters downhole
Controls under-explored 110 km trend including five high-priority gold prospects
Results from 14 FG Gold holes and ongoing Gold Creek drilling expected through Q1 2021
Following the Spin-out, one hundred percent of Karus Gold common shares (the
Karus Shares ) will be distributed to KORE shareholders on a pro rata basis to their KORE holdings. Karus Gold will not initially be listed on a public stock exchange but will operate as a reporting issuer in British Columbia and Alberta. In early 2021, Karus Gold intends to conduct a rights offering to all Karus shareholders to initially capitalize the company, followed by a planned public stock excha