by Greg Klein | November 23, 2016
With a gold-copper asset in British Columbia and a diamond project with gold prospects in Nunavut, Dunnedin Ventures TSXV:DVI proposes to distribute its portfolio between two companies. On November 23 Dunnedin announced plans to spin out the non-diamond assets into a new listing.
The company currently holds the 60,000-hectare Kahuna diamond project in Nunavut, where an inferred resource for two kimberlites totals 4.02 million carats, using a +0.85 mm cutoff. Till samples collected last year also showed anomalous gold of 50 ppb or more in 84 of 129 samples.
Meanwhile previous drill results from Dunnedin’s 4,000-hectare Trapper porphyry project in northwestern B.C. showed strong gold intercepts, with silver, lead and zinc showings as well.
“We believe that separate corporate vehicles for diamond and metal assets will yield the best long-term value to shareholders,” said CEO Chris Taylor.
Subject to approvals, Trapper and rights to gold at Kahuna would go to a newly created subsidiary with working capital for exploration. The new company’s shares would be distributed to Dunnedin shareholders on a pro rata basis. The new company would apply for a TSXV listing.
Dunnedin shareholders will vote on the proposed spinout early next year.
Dunnedin also plans to accelerate expiration of over six million warrants to December 23. Should all warrants be exercised, proceeds would come to about $632,708.