Kore Mining shareholders back Karus Gold Corp spin off
Kore Mining is to spin off its British Columbia exploration assets under Karus Gold Corp - following "overwhelming" shareholder approval - which will now raise seed capital in a rights offering.
CEO Scott Trebilcock said Karus plans to list its shares on the TSX Venture Exchange later in the first half of 2021, subject to regulatory approvals.
Under the plans, 1 Karus Gold share will be equal to 2 Kore shares.
The move follows the recent high-grade gold discovery at FG Gold of 14.35 meters of 6.44 g/t gold and drill results across 1.8kms of strike from 14 pending holes. Kore controls a dominant 1,000sqkms of claims in its South Cariboo Gold District of British Columbia.
"We expect the Cariboo region in BC will see a major increase in exploration and development in 2021 and beyond. The spin out of Karus enables KORE shareholders to participate in this exciting and emerging mining district. We encourage our shareholders to vote in favor ... to unlock value from this underappreciated asset."
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.