CanAlaska Uranium Ltd. and Core Nickel Corp. have announced the successful closing of a spin-out plan of arrangement. This arrangement involved a transfer of shares in Core Nickel Corp. to CanAlaska shareholders.
The spin-out plan of arrangement was established to provide CanAlaska shareholders with the opportunity to participate in Core Nickel Corp.’s uranium exploration and development plans. CanAlaska Uranium Ltd. had been exploring for uranium in the Thelon region in Canada’s Northwest Territories since 2004. Core Nickel Corp. has taken over its uranium exploration activities in that region.
In exchange for 136.2 million newly issued common shares of Core Nickel Corp., CanAlaska shareholders received 0.20 of a share of Core Nickel Corp. for every share of CanAlaska that they owned prior to the spin-out arrangement.
CanAlaska will continue to focus on the exploration and development of uranium resources in Canada, and has stated that it will use the new resources received from Core Nickel Corp. to expand its exploration and development efforts.
The spin-out of Core Nickel Corp. shares is the latest development in a line of strategic partnerships and joint ventures that CanAlaska has entered into over the years, and it stands to benefit shareholders of both companies. The move has been welcomed by investors, given that Core Nickel Corp. will now have greater exploration and development resources available in the Thelon region.
The spin-out is an exciting development for both CanAlaska and Core Nickel Corp., and marks the start of an exciting new chapter for both companies. With the resources to continue their exploration and development efforts, shareholders of both companies are likely to see further benefits down the line.
