The company said it believed that NGEx shareholders would benefit from having the project in a stand alone vehicle which can then be fast-tracked towards a feasibility study and further development.
NGEx Resources (TSX:NGQ) has announced its intention to spin-out its 100-percent owned Josemaría project located in San Juan province, Argentina, into a standalone public company.
President and CEO of NGEx, Wojtek Wodzicki said:
“Given the positive results of the recent pre-feasibility study of the Josemaría project, which demonstrated robust economics, we believe that NGEx shareholders would benefit from having the project in a stand alone vehicle which can then be fast-tracked towards a feasibility study and further development, without diluting the company’s interest in its other assets, including the Los Helados project. In 2016, NGEx successfully spun-out its Filo del Sol project in a similar fashion and we hope to repeat that success with Josemaría and, if the spin-out transaction is completed, the newly formed company would be well positioned to deliver a construction ready project into what many analysts anticipate will be a strong copper market.”