08:20 AM EDT, 07/23/2024 (MT Newswires) -- Nevada King Gold ( NKGFF ) reported Tuesday the latest assays from one angle reverse circulation hole at its Atlanta gold project in Nevada.

The company said it intercepted 5.14 grams per tonne (g/t) gold over 68.6 meters, including 6.28 g/t gold over 54.9 meters, at drill hole AT24HG-41.

"The long, high-grade intercept in this hole is highlighting not only the [South Quartzite Ridge target, but] also a number of other low resistance zones identified elsewhere on the larger Atlanta property, which covers an extensive collapsed caldera system," said Cal Herron, Nevada King's exploration manager. "AT24HG-41 has increased our confidence in the potential for intrusive-hosted mineralization within the Atlanta District, particularly in areas that may be similarly capped by an impermeable, unmineralized unit."

This comes after the company overnight Monday said its shareholders approved its planned spin-out of concessions and properties, with the exception of the Atlanta gold mine project, through a subsidiary of the company called SpinCo.

In connection with the spin-out, the company will grant SpinCo a 3% net smelter return royalty on all gold and silver production from Atlanta, including the Atlanta resource area and non-core claims surrounding the Atlanta gold mine project.

SpinCo will be named NV King Goldlands, drawing inspiration from a 193,000-acre mineral claim package along the Battle Mountain Trend that will be transferred to SpinCo.

The special resolution approving the spin-out garnered approval from 96% of votes cast by shareholders at the meeting held on Monday.

The spin-out will provide investors with an ownership stake in two separate specialized companies. Nevada King will focus exclusively on the advancement of the Atlanta gold mine project, while SpinCo will focus on advancing key project areas in the Battle Mountain Trend and its foothold as the third-largest mineral claim holder in Nevada.

Completion of the spin-out is subject to approval of the Supreme Court of British Columbia and other customary closing conditions. The spin-out is expected to become effective on Aug. 1.

Upon closing, Nevada King shares will continue to trade on the TSX Venture Exchange under the symbol NKG and on the OTC Markets in the U.S. under the symbol NKGFF. SpinCo shares will not be listed on any stock exchange.