Published: May 5, 2023 |

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HighGold Mining told investors it has entered into an arrangement agreement with wholly-owned subsidiary Onyx Gold Corp. under which they intend to complete a spin-out of the company’s Ontario and Yukon exploration properties.

The company said the deal will result in its existing shareholders receiving one common share in the capital of Onyx Gold for every four shares held in HighGold.

The spin-out into Onyx Gold will be completed by way of a court-approved plan of arrangement (POA) under the Business Corporations Act (British Columbia), it added.

“The board of directors of the company has determined that the POA is in the best interests of the company. Among other things, the separation of the properties into a separate public company will position such assets to be valued on a standalone basis,” HighGold Mining said in a statement.

“In addition, the transaction will allow the company’s management to focus their efforts on the development of certain other exploration properties with Onyx Gold’s management focused on exploring and developing the properties,” added HighGold’s statement.

The company said the POA remains subject to customary conditions, including, among other things, the approval by the TSX-V, approval by an affirmative vote of two-thirds of shareholders at a meeting of HighGold’s shareholders, and approval of the Supreme Court of British Columbia.

HighGold anticipates the meeting to be held at the end of May 2023. The effective date for determining the shareholders of HighGold who are eligible to receive Onyx Gold shares under the spin-out will be determined and announced in due course, it added.

Source: Proactive Investors

HighGold is a mineral exploration company focused on high-grade gold projects located in North America. HighGold’s flagship asset is the high-grade Johnson Tract Gold-Zinc-Copper Project located in accessible Southcentral Alaska. The company also controls one of the largest junior gold miner land positions in the Timmins, Ontario gold camp. This includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Timmins South properties. HighGold also has 100 percent ownership of a group of properties in Yukon’s emerging new Selwyn Basin Reduced Intrusive Related Gold district. HighGold’s experienced board and senior management team, are committed to creating shareholder value through the discovery process, careful allocation of capital, and environmentally/socially responsible mineral exploration.

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