05:29 PM EST, 12/12/2024 (MT Newswires) -- G2 Goldfields Inc. ( GUYGF ) entered Thursday into an arrangement agreement with G3 Goldfields Inc., a wholly owned subsidiary of the company, that will see it transfer to G3 its interest in certain non-core assets and cash in an amount to be determined by G2 at the relevant time to satisfy G3's working capital and initial listing requirements as preparations are made to spin-outs all of the common shares of G3 to the company's shareholders on a pro rata basis, through a plan of arrangement under the Canada Business Corporations Act.

G2 said it believes that its current share price does not fully recognize the value of the non-core assets, and that by completing the spin-out, shareholders will benefit from unlocking the value of the non-core assets. Additionally, the spin-out will allow the company to concentrate its efforts on its OKO project in Guyana, while providing G3 with sufficient working capital to advance the exploration and development of the non-core assets.

GTWO closed up $0.04 or 1.8% at $2.27, shy of 52 week highs