Blackrock Silver Corp V.BRC

Value creation through spin-off ?

[rodster55]

Yesterday, the Canadian exploration company Blackrock Gold (TSXV: BRC) announced that it is considering a spin-off of a project in order to focus more on its flagship projects. The company is exploring its sites in Nevada and has recently made several discoveries. The capital market has recognized the development with a rising share price and in this context the company is now aiming to focus its future activities on these potential discoveries.

Andrew Pollard, CEO of Blackrock Gold, commented: "With gold hovering near all-time highs and our Tonopah West property dominating the show, we see this as the perfect backdrop to unlock value for investors by spinning out what was once our flagship property, Silver Cloud, into a separate, discovery-oriented public company. We don't believe the market is fully valuing the sum of our parts and we see this as the ideal solution to ensure both projects get the attention and command the valuation of which they deserve, with purpose-built teams for each. (…)“

The notification further states that upon review, Blackrock shareholders may receive one share of the 'spin-off company' for every three common shares of Blackrock. This move will provide shareholders with the opportunity to participate in and, if successful, benefit from the formation of a new exploration company focused on Northern Nevada.

Aweful quiet before the announcement of the drilling program. Hopefully we will get an updated drilling plan soon !