NSGold spinoff focuses on Mexico
NSGold Corporation, the Vancouver company developing the Mooseland gold property in Nova Scotia, has spun off its second company, NSX Silver Inc., and commenced trading for the new venture Wednesday on the TSX Venture Exchange.
Were not expecting too much activity this week, because the actual distribution of shares to investors does not occur until Friday, Glenn Holmes, chief financial officer for both companies, said in an interview.
There will likely be more activity when shareholders see their NSX Silver shares in their accounts, said Holmes.
NSGold shareholders are to receive one common share of NSX Silver for each share of NSGold held at the close of business on March 16.
After the distribution, NSGold will hold approximately 2,015,000 shares of NSX Silver. The distribution by NSGold of the 43,413,767 common shares of NSX Silver will not affect NSGolds issued and outstanding shares, said the company.
While NSGold will remain focused on its flagship Mooseland property, the company has seven other projects in the province, including one in Lunenburg County. NSX Silver will focus on Mexico.
The spinoff company will allow investors to specifically consider that companys ventures in Mexico, said Holmes.
Its exciting to complete the separation of assets we set out to achieve, he said.
It has been an exciting but lengthy process and its going to be very interesting to see how the two will trade as separate entities.
Holmes said it is the companys expectation that after initial trading on Monday the aggregate value of the shares for the two new companies will exceed the recent value of NSGold shares. They were selling Tuesday for 46 cents on the TSX Venture Exchange.
NSX Silver started exploratory drilling this week at its Dios Padre project in the Sierra Madre Occidental region of the State of Sonora in Mexico.
This is a region associated with high-grade silver dating back to the 1600s and the era of the Spanish Jesuits. Our geophysical survey indicated anomalies representing areas of interest for silver, gold and copper and other base metals, said Holmes.
NSGold is currently awaiting more detailed reports on extensive drilling undertaken last year at the Mooseland property.
The most current resource estimation for the Mooseland gold project was completed by MineTech in June 2011, with a reported inferred gold resource of 2.5 million tonnes, grading 4.9 grams per tonne containing 390,000 troy ounces.
