Nuinsco nickel spinout ready for vote

Management of Nuinsco Resources (NWI-T, NUIRF-O) has set a meeting of shareholders for Jan. 26 to consider a spinoff of the company’s nickel assets into a new company, Victory Nickel.

The new company would get Nuinsco’s Minago and Mel development projects in northern Manitoba and the Lac Rocher exploration project in northwestern Quebec, plus $12 million in cash. Nuinsco recently closed a 19.2-million-share financing, for proceeds of $15 million, to cash up Victory, which would trade on the Toronto Stock Exchange.

The proposal needs the approval of two-thirds of Nuinsco shares voted at the meeting. There are also regulatory approvals from tax authorities and a final approval by the courts.

Nuinsco recently announced an initial resource estimate for Lac Rocher, discovered in 1999. The estimate, which considered mineralized intersections down to 125 metres vertical depth, puts the size of the measured and indicated resource at 1.2 million tonnes grading 0.93% nickel, based on a cutoff grade of 0.5% nickel.