TSX-V-listed New Pacific has announced the establishment of a subsidiary called Whitehorse Gold, which will hold its wholly-owned Tagish Lake gold project, in Yukon, Canada.
The company intends to directly or indirectly distribute Whitehorse common shares to New Pacific shareholders on a pro rata basis, by way of a plan of arrangement.
New Pacific also intends to list the Whitehorse common shares on the TSX-V exchange.
The company says the spin-out enables shareholders to realise the value of the Tagish Lake project in the current strong gold market through direct ownership in Whitehorse. Once the subsidiary is established and listed, the company will continue its focus on the exploration and development of the Silver Sand and Silverstrike projects, in Bolivia.
New Pacific acquired the Tagish Lake gold project in 2012 and carried out some drilling previously in 2011 that intercepted significant gold results.
The project comprises 1 051 mineral claims covering an area of 170 km2, in the Wheaton River Valley region.
The project hosts the advanced-stage Skukum Creek, Godell and Mt Skukum high-grade gold deposits and multiple high-priority exploration targets. The total inferred mineral resource of the three deposits is 1.1-million tonnes, grading 6.09 g/t, for 226 967 oz of gold.