By way of a court-approved plan of arrangement, Power Ore picks up Orefinders’ silver-cobalt assets, the former Mann silver-cobalt mines, and MacMurchy nickel property in the Gowganda district.
The arrangement is subject to approval by the TSX Venture Exchange. Power Ore is targeting to list on the exchange soon after receiving approval from Orefinders’ shareholders at a special meeting on May 4.
The spinoff is also out to raise $1 million in seed round financing from investors for general working capital and work program purposes.
“We see this transaction as a win-win for Orefinders’ balance sheet as this is akin to a non-dilutive financing,” said Orefinders CEO Stephen Stewart in a March 26 news release.
“Additionally, all Orefinders’ shareholders who will be receiving distributed shares in Power Ore, and the new shareholders coming into Power Ore will have direct exposure to series of acquisitions in Canada’s cobalt and battery metal sector. Our shareholders, in both Orefinders and Power Ore, can expect continued creative and accretive transactions which deliver value on a per share basis.”
Orefinders Resources, a Toronto junior gold explorer, announced on Jan. 30 that they were creating a spinoff battery metals company to be an “acquisition and development vehicle” based on the cobalt potential in the Gowganda area.
The Mann Mines are silver and cobalt assets located in Milner Township, northwest of the town of Cobalt.
The property hosts nine former working shafts and a ramp driven to the 210-foot level. They were in production at various times in the 20th century with production prior to 1987 of more than 330,000 ounces of silver.
The 867-hectare property was in the historic Temiskaming Silver area which produced 570,000,000 ounces of silver and 28,000,000 pounds of cobalt. Diamond drilling in 2011 and 2012 confirmed high-grade silver and cobalt mineralization. The MacMurchy nickel property is 25 kilometres west of the Mann Property.