07:59 AM EDT, 10/18/2024 (MT Newswires) -- Power Nickel ( PNPNF ) said Friday that it agreed to spin out its Golden Ivan property in British Columbia along with certain Chilean exploration assets and liabilities to shareholders through spinoff company Chilean Metals.

Power Nickel ( PNPNF ) said the proposed spinout will provide investors with an ownership stake in two separate specialized companies while allowing it to focus on advancing the Nisk project in Quebec.

"Fundamentally we believe our shareholders are not receiving at the moment any benefit from the properties we are spinning out," the company said. "We also believe the private nature of the spin out, and that [Chilean Metals] will initially not seek a stock exchange listing, may prove problematic for the non declared holders of what we believe is a naked short position in Power Nickel ( PNPNF )."

Power Nickel's ( PNPNF ) share price rose 1.3% yesterday to $0.76 on the TSXV.