The Ontario Superior Court of Justice has granted Trigon Metals an interim order to spinout (unbundle) its wholly-owned Moroccan subsidiary, Safi Silver Corp.
Trigon announced that it had entered into an arrangement agreement with its wholly-owned subsidiary, Safi Silver Corp. to undertake a spin-out transaction that would reorganize the business and capital structure of the company to spin out its assets in Morocco, namely the Silver Hill project, to the shareholders of Trigon.
A spinout is a type of corporate realignment involving separating a division to form a new independent corporation.
The spinout company takes with it the operations of the segment and associated assets and liabilities.
Safi Silver Corp holds Trigon Metals Moroccan assets, namely the Silver Hill and Addana projects.
Trigon Metals’ shareholders will meet on April 9, 2024, to approve, among other things, the proposed arrangement and the share consolidation.
Each Trigon shareholder’s percentage ownership and proportional voting power in Trigon will remain unchanged, except for minor adjustments resulting from the treatment of fractional shares.
The company’s name will not change.
Trigon Metals CEO Jed Richardson said the proposed spinout of the Moroccan assets will allow them to focus on the Kombat Mine in Namibia while providing shareholders enhanced value through ownership of Safi Silver as a standalone company that is focused on the exploration of the Silver Hill and the Addana projects in Morocco.
“We believe the spinout will maximize each business’s long-term value and provide our shareholders with two distinct investment opportunities,” Richardson said.
