The board of directors has authorized management to consider the various transactional options to accomplish this objective in “the most tax-efficient and value-creating manner.”

The company anticipates a decision will be made in the coming weeks and that a transaction could be completed as early as Q1 2021.

The new stand-alone gold company would include KORE’s exploration assets in British Columbia, consisting of a 1,000 km2 claim position in the Cariboo gold district including the FG Gold and Gold Creek projects. The Cariboo region of British Columbia is an active mining jurisdiction that is host to Osisko Gold Royalties’ (TSX: OR) Cariboo gold project and several large operating copper-gold mines.

Scott Trebilcock, president and CEO
“With a dominant 1,000 km2 position in a highly prospective gold district, including the recent transformational high-grade discovery at FG Gold, KORE’s South Cariboo gold assets are an exceptional gold exploration story,” KORE CEO Scott Trebilcock said in a press release.

“It is also a great time for the Cariboo gold district with Osisko’s aggressive exploration and development activity attracting attention and capital,” he added.

KORE recently intercepted 14.3 m of 6.4 g/t gold at 386 m downhole at FG Gold. This new discovery, which extends over 300 m downdip from the known resource, opens up underground potential and could have a profound impact of the size and grade of the FG Gold deposit.

Assays are pending for additional 14 holes over a 1,780 m of lateral strike with seven holes intersecting quartz veining with visible gold. Drilling continues with 2,000 m planned to expand Gold Creek through mid-December.

Following the spin-out, KORE said it would retain its pipeline of US gold development assets with the Imperial and Long Valley projects.

“KORE will retain the Imperial and Long Valley development assets; simple, low-cost gold heap leach projects in the US, each with their own robust returns and the potential to produce nearly 250,000 ounces of gold per year,” Trebilcock said.

“KORE would remain attractive to investors looking for exposure to low-cost gold development and potential mergers and acquisitions that quality assets can generate as the gold cycle matures.”

Shares of Kore Mining were down 5.8% by 1:30 p.m. Tuesday on the TSX. The company’s market capitalization is approximately C$115.1 million.