Power Nickel and Chilean Metals Successfully Complete Business Spin-Out, Enhancing Future Opportunities

Power Nickel and Chilean Metals Complete Strategic Spin-Out

On February 3, 2025, Power Nickel Inc. and Chilean Metals Inc. announced the completion of their significant strategic reorganization, whereby the Golden Ivan Property and related assets have been successfully spun out to Power Nickel shareholders through Chilean Metals. The move is aimed at unlocking value and enhancing future growth prospects for both companies.

Terry Lynch, CEO of Power Nickel and a director at Chilean Metals, expressed his satisfaction with the swift execution of the spin-out, stating, "Wow that was easy! All kidding aside, it’s terrific to have this accomplished. It will allow Chilean Metals to grow at its own pace and on its own merit."

The spin-out was executed through a statutory plan of arrangement, effective at 12:01 a.m. on the same day, aligning with the Business Corporation Act in British Columbia. Shareholders of Power Nickel, who were on record as of the close of trading on January 31, 2025, will receive new common shares in both Power Nickel and Chilean Metals. This process enabled Shareholders to retain about half of the issued shares of Chilean Metals, fostering a direct stake in both entities moving forward.

Going forward, Power Nickel aims to concentrate on the advancement of its flagship Nisk project, known for its high-grade nickel copper PGM, gold, and silver mineralization. The Nisk property holds a strategic land position along a 20-kilometer strike length, presenting significant exploration opportunities. Drilling programs are planned to further explore various high-grade mineralization zones within the Nisk land package, all aimed at establishing the site as one of Canada’s next polymetallic mines.

Chilean Metals, following the spin-out, has taken full ownership of the Golden Ivan property situated in Terrace, British Columbia, covering 797 hectares alongside its other Chilean projects. This new focus allows Chilean Metals to carve its own path in the mining sector, developing key properties without the overarching influence of Power Nickel’s initiatives.

While the Golden Ivan property is expected to become a centerpiece of Chilean Metals’ endeavors, the company will also maintain exploration contracts over its assets located in Chile across multiple mining districts. The clear delineation of goals between the two companies marks a significant step in generating value for their respective shareholder bases.

In summary, the spin-out signals an exciting new chapter for both Power Nickel and Chilean Metals. Investors can expect increased transparency in each entity's operations as they continue to explore, develop, and unlock their respective resource potentials. As future exploration initiatives in mid-H1 2025 ramp up, more updates are anticipated concerning the advances in both companies in the lead-up to the PDAC conference.

The New Power Nickel Shares will continue to trade on the TSX Venture Exchange, OTC Market in the U.S., and Frankfurt Stock Exchange. Meanwhile, Chilean Metals will operate as a reporting issuer in British Columbia and Alberta without a direct stock exchange listing, maintaining compliance with securities regulations.

This strategic reorganization empowers both organizations to focus on their individual strengths and opportunities for growth in the competitive mining landscape. With ambitious plans on the horizon, the future remains bright for both Power Nickel and Chilean Metals as they chart their courses independently in the resources market.