Zeus North America Mining Corp. Completes Plan of Arrangement with Kelso Mining Inc.

Zeus North America Mining Corp. (CSE:ZEUS)(OTCQB:ZUUZF)(FRANKFURT:O92) has announced the successful closing of its plan of arrangement with Kelso Mining Inc. (Kelso), effective February 5, 2025. This strategic move allows both companies to focus on their respective core assets and growth prospects, potentially enhancing their investment appeal in the short and long term.

Spin-Out of Chlore Property to Kelso Mining Inc.

The arrangement involved the spin-out of the Chlore Property in British Columbia to Kelso, with Zeus shareholders receiving one share of Kelso for every 150 shares of Zeus held as of the share distribution record date. This distribution method ensures that shareholders are fairly compensated for the value of the Chlore Property. As a result of the spin-out, Kelso became a reporting issuer in the Provinces of British Columbia, Alberta, and Ontario, increasing its visibility and attractiveness to investors.



Zeus North America Mining Corp. Strategic Focus and Future Growth Prospects

Following the spin-out, Zeus will be focused solely on its exploration properties in the state of Idaho, USA, namely the Cuddy Mountain, Selway, and Great Western properties. This concentration allows Zeus to allocate more resources and attention to these core assets, potentially leading to faster development and increased value. By retaining its working capital, Zeus has the financial flexibility to invest in exploration, development, and operational activities on its Idaho properties, accelerating growth and increasing the likelihood of discovering new mineral reserves.

Potential Synergies and Cost Savings

The arrangement between Zeus and Kelso is expected to bring several potential synergies and cost savings to both companies and their shareholders. By transferring the Chlore Property to Kelso, Zeus can reduce its administrative and operational costs associated with managing the property. Kelso, as a separate entity, can raise capital independently to fund the development of the Chlore Property, potentially reducing the need for Zeus to dilute its shareholders through additional equity issuances. Additionally, the spin-out may result in tax benefits for both companies, as the transfer of assets and liabilities between the two companies could be structured as a tax-deferred exchange.

Investment Appeal of Zeus and Kelso Shares

The completion of the plan of arrangement could enhance the short-term valuation of both Zeus and Kelso shares by creating two focused companies with distinct investment appeal. In the long term, the success of both companies will depend on their ability to explore, develop, and extract minerals from their respective properties, as well as their capacity to manage risks and navigate regulatory environments.

Zeus' adjacency to Hercules Metal Corp.'s Leviathan Copper Porphyry discovery could further boost its investment appeal, as it may indicate the presence of similar mineralization on Zeus' properties. Meanwhile, Kelso's long-term success will depend on its ability to successfully explore, develop, and extract minerals from the Chlore Property, as well as its capacity to secure financing and manage risks.

In conclusion, the completion of the plan of arrangement between Zeus North America Mining Corp. and Kelso Mining Inc. allows both companies to focus on their respective core assets and growth prospects, potentially enhancing their investment appeal in the short and long term. The arrangement brings potential synergies and cost savings, and the spin-out of the Chlore Property to Kelso creates two focused companies with distinct investment appeal.