11:31 AM EST, 01/23/2024 (MT Newswires) -- Stifel noted Tuesday that Arizona Metals Corp.(AZMCF) 's plan to spin out two new companies to existing shareholders.
Arizona Metals (AZMCF) plans to establish a standalone company focused on advancing the Sugarloaf Peak gold project, as well as a new royalty spinoff company that will own 2% royalties on its flagship Kay Project and nearby exploration properties.
Stifel noted the potential risks for introducing a royalty on a "previously unencumbered asset," adding that the market would likely rather see efforts focused on creating exploration value.
Stifel gave the company a buy rating with a $7.50 price target.
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