Power Nickel and Chilean Metals: A New Chapter in Mineral Exploration

Power Nickel Inc. (PNPN) and Chilean Metals Inc. have announced the completion of a strategic spin-out, creating two independent, specialized companies focused on distinct mineral exploration projects. The arrangement, effective February 3, 2025, provides Power Nickel shareholders with one new Power Nickel share and 0.05 Chilean Metals shares for each share held. This strategic move aims to unlock shareholder value by concentrating resources and efforts on core competencies.

Power Nickel will now focus solely on advancing its Nisk project, which has demonstrated strong potential for nickel and copper mineralisation. The Nisk property comprises a large land position (20 kilometres of strike length) with numerous high-grade intercepts. By concentrating on the Nisk project, Power Nickel can accelerate exploration and development activities, potentially leading to increased mineral resource estimates and confirming the project's long-term commercial viability. This focus will allow Power Nickel to better capitalize on the growing demand for nickel and copper, which are essential metals for the production of electric vehicle batteries and other clean energy technologies.

Chilean Metals, on the other hand, will focus on advancing the Golden Ivan property in British Columbia and various Chilean projects. The Golden Ivan property is located in Terrace, British Columbia, and comprises 13 mineral claims covering a total area of 797 hectares. Chilean Metals will update exploration plans for the property, focusing on the two known mineral showings (gold ore and magee) and a portion of the past-producing Silverado mine. The property hosts polymetallic veins containing silver, lead, zinc, gold, and copper. In 2021, a successful prospecting and geologic mapping program resulted in the discovery of two new high-grade gold zones yielding 16.2 grams-per-tonne (g/t) gold and 15.1 g/t Au in outcrop.

Chilean Metals also owns interests in the Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco projects located in Chile. The company will focus on advancing these projects, which are prospective for various minerals, including copper, gold, and silver.

The spin-out is expected to create two specialized companies with distinct operational focuses, potentially driving up the valuation of both Power Nickel and Chilean Metals shares. However, the trading dynamics of Chilean Metals shares may be impacted by the fact that they will not be immediately listed on any stock exchange, which may limit liquidity and make it more challenging for investors to buy or sell shares.

In conclusion, the spin-out of the Golden Ivan property and certain Chilean assets from Power Nickel to Chilean Metals creates two independent entities with distinct operational focuses, allowing each company to concentrate on its core competencies and unlock shareholder value. Power Nickel will focus on the Nisk project, while Chilean Metals will advance the Golden Ivan property and Chilean assets. This strategic move positions both companies to capitalize on the growing demand for minerals and create shareholder value through specialized exploration and development activities.