CanAlaska Uranium Ltd. and Core Nickel Corp. recently announced that their spin-out plan of arrangement has been successfully concluded and is now effective.
The two companies are mineral exploration and development companies that specialize in uranium, nickel, copper, zinc, and cobalt. The agreement was formed in order to separate the two companies and allow each to focus on its individual prospects. CanAlaska Uranium will now focus on uranium opportunities in Northwest Saskatchewan, while Core Nickel is committed to developing a world-class nickel play in the Timmins area of Ontario.
CanAlaska Uranium is now a wholly owned subsidiary of Core Nickel. This agreement was made in order to optimize their resource potentials and share value between the two companies. Shareholders of CanAlaska will receive 1.45 common shares of Core Nickel for each common share of CanAlaska held.
Following the completion of the transaction, CanAlaska Uranium will retain a portfolio of mineral exploration projects encompassing 128,000 hectares located in the Athabasca Basin of Canada. This includes the West McArthur uranium project, where recent drilling was successful in identifying high-grade uranium mineralization.
The spin-out also signifies further progress for Core Nickel’s Timmins nickel project. Core Nickel is working to develop a major nickel center of excellence in the region, with a focus on providing a unique Volt-nickel-cobalt technology.
This spin-out agreement is a major development in establishing these two distinct companies, while at the same time allowing both to pursue their operations with laser-like focus and efficiency. With CanAlaska at the forefront of uranium exploration and Core Nickel targeting the vast and growing nickel industry, investors can look for big things to come from both.