Almaden Minerals Ltd. (“Almaden” or the “Company”) (TSX: AMM)(NYSE MKT: AAU) announced that its Board of Directors has unanimously approved a strategic reorganization of its business. Almaden’s early stage exploration projects, royalty interests and certain other non-core assets will be transferred to a newly incorporated company (“Spinco”). Shareholders of the Company will receive shares in Spinco in proportion to their shareholdings in Almaden. There will be no change to shareholders’ existing interests in the Company.
Spinco will hold the following key assets:
- a 2% Net Smelter Return (“NSR”) royalty on the Company’s Tuligtic property in Mexico, which hosts the Company’s Ixtaca gold-silver development project;
- a 1.5% NSR on the Caballo Blanco gold deposit in Mexico, a development project currently operated by Goldgroup Mining Inc.;
- a 2% NSR on the Elk gold deposit in Canada, an advanced exploration project currently operated by Gold Mountain Mining Corp.;
- a portfolio of 21 additional NSR royalties on exploration projects in Mexico, Canada and the United States identified through the Company’s past prospect generator activities;
- a 100% interest in the El Cobre copper-gold porphyry exploration project in Mexico and the Willow copper-gold porphyry exploration project in Nevada, in addition to a portfolio of 20 other exploration projects, many of which are located in eastern Mexico in geological environments similar to the recent Ixtaca and Caballo Blanco discoveries; and
- sufficient working capital to satisfy stock exchange requirements.
Source: Press Release
