KORE Mining plans to split US development assets and the Canadian exploration assets into separate publicly listed companies
KORE Mining has announced that it is contemplating a proposal to spin out its South Cariboo gold exploration assets into a new stand-alone publicly listed gold company.
The proposed plan to split US development assets and the Canadian exploration assets into separate companies forms part of KORE Mining’s efforts to maximise the value of its gold portfolio.
The company’s board of directors have authorised the management to look for options to achieve its objective in “the most tax-efficient and value-creating manner.”
Subject to a decision which is expected in the coming weeks, a transaction could be closed as early as the first quarter of 2021, resulting in the formation of a new stand-alone publicly listed gold company.
New exploration company to include KORE’s exploration assets in British Columbia
The new pure-play exploration company would include KORE’s exploration assets in British Columbia. The assets include a 1,000km2 claim position in the Cariboo gold district including the FG Gold and Gold Creek projects.
KORE CEO Scott Trebilcock said: “With a dominant 1,000 km2 position in a highly prospective gold district, including the recent transformational high-grade discovery at FG Gold, KORE’s South Cariboo gold assets are an exceptional gold exploration story.
“It is also a great time for the Cariboo gold district with Osisko’s aggressive exploration and development activity attracting attention and capital.”
Upon completion of the spin-out, KORE plans to retain its pipeline of US gold development assets with the Imperial and Long Valley projects.
Trebilcock added: “KORE will retain the Imperial and Long Valley development assets; simple, low cost gold heap leach projects in the US, each with their own robust returns and the potential to produce nearly 250,000 ounces of gold per year.
“KORE would remain attractive to investors looking for exposure to low cost gold development and potential mergers and acquisitions that quality assets can generate as the gold cycle matures.”
The Imperial gold project is located in Imperial County, California while the Long Valley gold project located in Mono County, California.