ELKO — Columbus Gold Corp. reported it has initiated the evaluation of different options for the possible spin-out of its non-core assets with a goal of doing so by the end of the year.
The plan is to place the company’s Nevada and Turkish projects into a separate publicly traded vehicle by the end of the year so Columbus Gold can focus on a project in French Guiana, according to the announcement.
“Columbus Gold’s non-core assets are currently not being valued by the market,” said Robert Giustra, chief executive officer of Vancouver-based Columbus Gold.
“Placing them into a separate public listing that Columbus Gold maintains a significant interest in will unlock value for Columbus Gold shareholders and allow management of Columbus Gold to focus its attention on French Guiana and the 1.9 million-ounce Paul Isnard gold project,” he said in a statement.
Columbus Gold has 25 properties in Nevada.
The company reported it is performing due-diligence on a number of potential alternative companies and is considering the pros and cons to pursuing that route versus an initial public offering.
The company also stated its recent announcement of a letter of intent to earn into the Demirtepe copper-gold-silver and molybdenum project in Turkey was done with the objective of creating a compelling asset mix for the eventual spin-out.