On Tuesday, junior exploration Company
Blackrock Gold Corp. (TSX-V: BRC, OTCQB: BKRRF, Forum) announced that its Board is considering a proposal where the Company would transfer its Silver Cloud property in Nevada to a new subsidiary to be formed,
SpinCo.
SpinCo would receive funding from the Company, and then its shares would be spun out to Blackrock’s shareholders, who would end up owning shares in both Blackrock and SpinCo in the same proportions.
With gold prices touching all-time highs and given the success of BlackRock’s Tonopah West property, the Company’s President and CEO, Andrew Pollard, stated that this is the perfect backdrop to unlock value for investors by spinning out what was once its 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 perfect opportunity to ensure both projects get the attention of which they deserve, with purpose-built teams for each. Not only would this allow Blackrock to streamline its focus towards re-establishing and developing the Tonopah silver district into the tier-one mining complex it once was, it will also allow shareholders to participate in, and benefit from the creation of a new Northern Nevada focused exploration company. With shareholders to receive one share in the Spinco for every three shares they hold in Blackrock, this creates a compelling new dynamic to our investment thesis as investors will stand to own shares in two public companies two clear visions.”
To find out more about this proposed spin-out, click
here.
This comes as BRC recently
made a second discovery through its maiden drill program at its 100% controlled Tonopah West project located in the Walker Lane trend of Western Nevada: 2,215 g/t silver eq. over 3 metres within 4.6 metres of 1,577 g/t silver eq.
FULL DISCLOSURE: Blackrock Gold Corp. is a client of Stockhouse Publishing.