Nuinsco looking at nickel spinoff by year-end

Plans by Nuinsco Resources (NWI-T) to set up a separate company to hold its nickel assets should harden into a formal plan of arrangement this quarter, the company announced in its quarterly financial report.

The spinoff, which would put the feasibility-stage Mel and Minago projects in Manitoba and the Lac Rocher exploration project in Quebec into a new company, was approved in principle at Nuinsco’s general meeting last spring. Management has suggested that separating out a “pure-play” nickel company would command a higher valuation on the stock market.

Nuinsco showed a modest profit in the quarter, thanks to management fees from Campbell Resources (CCH-T, CBLRF-O) and to a gain from the sale of shares in Rainy River Resources (RR-V). Net income was $34,000 on revenues of $873,000.