News today that GSR will spin out its Luckystrike property. Here are some of the highlights:· Goldstrike's six 100% owned properties with no underlying royalties or property payments in the White Gold District, Yukon to be spun-out as a standalone public company, Luckystrike Resources Ltd.
Transaction intended to maximize value, allowing the White Gold District properties to be advanced on a standalone basis, while giving shareholders the optionality of participating in both companies.
On completion, Luckystrike will have a strong balance sheet with a $2.5 million investment from Goldstrike as well as potential additional third-party private placement financing of up to $2.5 million.
· Goldstrike shareholders to receive Luckystrike shares on a 1 for 7 basis. On a pro forma basis, Goldstrike shareholders are expected to own approximately 76% and Goldstrike is expected to own approximately 24% of the outstanding Luckystrike shares.