-- White Gold (WGO.V) has launched a previously flagged spinout of subsidiary W2 Critical Minerals Corp., the company said Tuesday.
The spinout is designed to unlock the value of White Gold's non-gold project portfolio by transferring its copper, molybdenum, tungsten and other critical mineral assets in Yukon into a standalone company.
"By creating this dedicated critical minerals company, we believe we are enhancing shareholder value and also advancing opportunities that are increasingly central to Canada's long-term economic and supply chain strategies," White Gold Chief Executive Officer David D'Onofrio said.
Under terms, White Gold shareholders will receive one share of W2 for every five White Gold shares held. W2 intends to complete a private placement financing to raise up to C$5 million, with White Gold retaining a 19.9% stake.
W2 shares will be listed on the TSX Venture Exchange. The spinout company's portfolio will include six properties representing about 15% of White Gold's current claims.
White Gold will continue to advance its flagship White Gold project.
Shares in WGO were down $0.06 or 3.3% to $1.71 yesterday.