Power Nickel Inc. (the “Company” or “Power Nickel”) (TSXV: PNPN) (OTCBB: PNPNF) (Frankfurt: IVV) and Chilean Metals Inc. (“Chilean Metals”) are pleased to announce that they have completed the previously announced strategic reorganization of their business pursuant to which the Golden Ivan Property and certain Chilean assets and liabilities have been spun out to Power Nickel shareholders (the “Spin-Out”) through Chilean Metals.
Terry Lynch, Chief Executive Officer of Power Nickel and a Director of Chilean Metals, commented:
“Wow that was easy! All kidding aside it’s terrific to have this accomplished. It will allow Chilean Metals to be able to grow at its own pace and on its own merit. We recently reviewed the exploration programs and we are very excited to have them advance their drill plans in mid H1. Will have a more fulsome update for the market around PDAC. We are excited about the future at Chilean even while we remain focused on advancing our exploration at Nisk.”
The Spin-Out was completed by way of a statutory plan of arrangement (the “Arrangement”) pursuant to the Business Corporation Act (British Columbia). The Arrangement became effective at 12:01 a.m. on February 3, 2025 (the “Effective Time”). In accordance with the Arrangement, the Power Nickel shareholders of record as at the close of trading on January 31, 2025 (the “Shareholders”) will receive, in exchange for each Power Nickel common share held immediately prior to the Effective Time: (i) one new common share in the authorized capital of Power Nickel (each, a “New Power Nickel Share”); and (ii) 0.05 of one common share in the authorized capital of Chilean Metals (each, a “Chilean Metals Share”). The Shareholders own approximately 50% of the issued and outstanding Chilean Metals Shares, with Power Nickel holding the remaining balance of the Chilean Metals Shares.
As previously announced, the Spin-Out was completed as part of a strategic reorganization to unlock value for Power Nickel shareholders, providing them with an ownership stake in two separate specialized companies. Power Nickel will continue to focus on the advancement of the Nisk project, while Chilean Metals will focus on advancing the Golden Ivan property and the Chilean assets. The Golden Ivan property is located in Terrace, British Columbia and comprises 13 mineral claims, covering a total area of 797 hectares. Chilean Metals acquired the Company’s interests in the Zulema, Tierra de Oro, Palo Negro, Hornitos and Tabaco projects located in Chile. Power Nickel retained its royalty interest in the Chilean Copaquire project.
The New Power Nickel Shares continue to trade on the TSX Venture Exchange (“TSXV”) in Canada, on the OTC Market in the United States and on the Frankfurt Stock Exchange in Germany. The CUSIP / ISIN for the New Power Nickel Shares is: 739301406 / CA7393014062. Chilean Metals will not be listed on any stock exchange but will operate as a reporting issuer in British Columbia and Alberta and will comply with its continuous disclosure obligations under applicable securities laws.
