Power Nickel: Unlocking Value Through Spin-Out of Golden Ivan and Chilean Assets

Power Nickel Inc. (TSX-V:PNPN, OTCQB:PNPNF) has provided an update on the spin-out of its Golden Ivan property and Chilean exploration assets, a strategic move aimed at unlocking unrealized value and enhancing focus on its flagship Nisk project. The company announced that the spin-out will be completed by the end of January 2025, subject to shareholder and regulatory approvals.

The spin-out involves the creation of a new entity, Chilean Metals Inc., which will acquire Power Nickel's interests in the Golden Ivan property and Chilean exploration assets. In exchange, Power Nickel shareholders will receive one new Power Nickel share and 0.05 of a Spinco share for each existing Power Nickel share held. The transfer agent, Endeavor Trust, will oversee the share exchange process.

The Golden Ivan property, located in Terrace, British Columbia, comprises 13 mineral claims covering a total area of 797 hectares. The property hosts two known mineral showings and a portion of the past-producing Silverado mine. In recent years, Power Nickel has conducted successful exploration work at Golden Ivan, including a 2021 prospecting and geologic mapping program that led to the discovery of two new high-grade gold zones.

Chilean Metals will also acquire Power Nickel's interests in the Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco projects located in Chile. Power Nickel will retain its royalty interest in the Copaquire project.

Power Nickel CEO Terry Lynch emphasized the potential for value creation through the spin-out, stating that "this arrangement unlocks unrealized value in our assets while enhancing focus on our flagship Nisk project. Additionally, it addresses concerns about trading imbalances, including evidence of naked short-selling."

The spin-out aligns with Power Nickel's broader vision of creating distinct value streams for shareholders. The company believes that the private nature of the spin-out and the fact that Spinco will initially not seek a stock exchange listing may pose challenges for non-declared holders of naked short positions in Power Nickel.

Power Nickel's strategic focus on the Nisk project, a high-grade nickel, copper, and polymetallic deposit in Quebec, is expected to benefit from growing demand in the electric vehicle (EV) sector. By spinning out the Golden Ivan and Chilean assets, Power Nickel can allocate more resources and attention to the Nisk project, enhancing its future growth prospects.

The spin-out also addresses Power Nickel's concerns regarding naked short selling and market manipulation. By spinning out the assets into a private entity, the company hopes to make it more difficult for non-declared holders of naked short positions to manipulate the stock price. Additionally, the spin-out allows for a more diversified investor base, reducing the impact of naked short selling on the overall value of the company's assets.

In conclusion, Power Nickel's spin-out of the Golden Ivan property and Chilean exploration assets to Chilean Metals Inc. is a strategic move that unlocks unrealized value, enhances focus on the Nisk project, and addresses concerns about naked short selling and market manipulation. Shareholders can expect a more diversified investment portfolio and potential value creation through this arrangement. As the spin-out process progresses, investors should closely monitor Power Nickel's developments and the potential impact on the company's share price.