Power Nickel completes spin-out of Golden Ivan property and Chilean exploration assets

Toronto, February 1, 2025 – Power Nickel Inc. has officially completed the spin-out of its Golden Ivan property and Chilean exploration assets, transferring them to its wholly owned subsidiary, Chilean Metals Inc. (Spinco). The restructuring, which was approved by shareholders at the Annual General and Special Meeting on November 22, 2024, will take effect at 12:01 a.m. PST on February 3, 2025. This marks a strategic shift for Power Nickel, allowing it to focus entirely on its flagship Nisk project while enabling Spinco to operate as an independent exploration company with a specific focus on the Golden Ivan property and Chilean mineral assets.

What the Spin-Out Means for Shareholders

As a result of the spin-out, shareholders of Power Nickel recorded at the close of trading on January 31, 2025, will receive new share allocations. Each shareholder will be entitled to one new Power Nickel share for every common share previously held, along with 0.05 of one Spinco common share. This adjustment ensures that shareholders maintain an interest in Power Nickel’s core operations while also gaining exposure to the growth potential of Spinco’s exploration activities.

Stock option holders will see their options adjusted to reflect the new structure, allowing them to acquire shares in both Power Nickel and Spinco. However, Power Nickel’s outstanding warrants will not be included in the spin-out arrangement and will instead be adjusted under separate contractual provisions. Endeavor Trust Corporation has been appointed as the depositary to oversee the share exchange process. Shareholders holding their Power Nickel shares in certificated form will receive a letter of transmittal with instructions on how to complete the exchange. Additional details about this process are available in Power Nickel’s information circular dated October 21, 2024, which has been filed under the company’s SEDAR+ profile.

Future Trading Status of Power Nickel and Spinco

Following the spin-out, Power Nickel shares will continue trading on the TSX Venture Exchange (TSXV) in Canada, the OTC Market in the United States, and the Frankfurt Stock Exchange in Germany. Spinco shares, however, will not be immediately listed on any stock exchange. Instead, Spinco will operate as a reporting issuer in British Columbia and Alberta, ensuring compliance with Canadian securities regulations while maintaining financial transparency for shareholders.

Strategic Reasons Behind the Spin-Out

The decision to spin out the Golden Ivan property and Chilean exploration assets aligns with Power Nickel’s long-term strategy of unlocking shareholder value by creating two independent entities with distinct operational focuses. Power Nickel will now concentrate solely on advancing its Nisk project, which has demonstrated strong potential for nickel and copper mineralisation. Meanwhile, Spinco will be dedicated to developing the Golden Ivan property and its Chilean exploration projects.

The Golden Ivan property, located in Terrace, British Columbia, spans 13 mineral claims covering 797 hectares and is considered highly prospective for mineral exploration. Spinco’s Chilean asset portfolio includes the Zulema, Tierra de Oro, Palo Negro, Hornitos, and Tabaco projects, positioning it as a significant new exploration company in the Latin American mining sector. While Power Nickel is divesting direct ownership of these assets, it will retain a royalty interest in the Copaquire project, ensuring continued financial exposure to mining developments in Chile.

Power Nickel’s Post-Spin-Out Exploration Plans

With the spin-out complete, Power Nickel is shifting its focus toward expanding its Nisk project, a high-grade nickel-copper deposit that has already shown promising results. The company has commenced its 2025 winter drilling campaign, deploying three drill rigs to key target areas. The immediate objective is to extend the Lion Zone deposit through deeper drilling while also exploring a 5.5-kilometre undrilled ultramafic strike between Nisk and Lion. Additionally, new geophysical anomalies identified in 2024 will be investigated to uncover further mineralisation opportunities.

To strengthen its exploration efforts, Power Nickel has engaged a geophysicist to analyse borehole and ground electromagnetic survey data. This analysis will help the company refine drill targets and improve exploration efficiency. By prioritising high-impact drilling locations, Power Nickel aims to expand its mineral resource estimates and confirm the Nisk project’s long-term commercial viability.

Discovery of a New Mineralised Zone

Recent drilling has provided further optimism for Power Nickel’s resource expansion efforts. In late 2024, a borehole electromagnetic survey led to the discovery of a new mineralised zone approximately 700 metres east of the Lion Zone. Initial drilling intersected massive sulphides with strong nickel mineralisation, suggesting that the area could hold significant additional resources. While official assay results are still pending, preliminary on-site XRF analyses indicate high-grade metal content, making this discovery a priority target for Power Nickel’s ongoing exploration campaign.

What’s Next for Power Nickel and Spinco?

With the spin-out finalised, Spinco will now operate as an independent entity, focusing on securing financing and advancing its mineral exploration projects. The separation of Power Nickel and Spinco allows both companies to attract investors aligned with their specific operational goals, streamline project development, and accelerate growth without conflicting priorities.

For Power Nickel, the focus remains on maximising the potential of the Nisk project. Management expects that further drilling will enhance the company’s mineral resource estimates and confirm the project’s commercial viability. The company is particularly optimistic about the potential connection between the Nisk deposit and the newly identified Lion copper deposit, which could significantly increase the scale of the resource.

A New Chapter for Power Nickel and Spinco

The completion of the Power Nickel spin-out represents a pivotal moment for the company and its shareholders. By creating two independent companies with clear strategic objectives, the restructuring ensures long-term value creation and sets the stage for significant exploration and development activities in both Canada and Chile.

Power Nickel is now positioned as a streamlined nickel-copper exploration company focused on expanding its resource base at Nisk, while Spinco is poised to become a leading explorer of the Golden Ivan property and Chilean mineral assets. This transition allows both companies to operate with greater efficiency, attract targeted investment, and pursue aggressive exploration strategies that will drive future growth.