Manitou Gold announces its intention to separate


TORONTO, Aug. 17, 2022 (GLOBE NEWSWIRE) — Manitou Gold Inc. (TSX-V: MTU) (the “Company” Where “Manitou) is pleased to announce that its Board of Directors has approved the principle of a strategic reorganization of Manitou’s assets (the “Dilute”) under which Manitou proposes to divest nickel-cobalt-PGE products from its Goudreau project to a newly incorporated wholly-owned subsidiary named Western Nickel Corp. (“Western Nickel”). The Spin-Out, if completed as currently proposed, would result in, among other things, a listing of the common shares of Western Nickel (the “Western Nickel Stocks”) on a Canadian stock exchange and a portion of the issued and outstanding Western Nickel shares being distributed directly to Manitou shareholders on a pro rata base. Completion of the Spin-Out will allow Manitou to continue as a gold-focused exploration company.

The decision to undertake the spin-off was prompted by the Company’s recent success in demonstrating, in addition to the high level of prospecting at the Goudreau Project for an economic gold deposit, the vast untested potential for significant nickel mineralization within the Goudreau project. Manitou’s management and board of directors believe that the spin-out is the most effective way to unlock the value of the Goudreau project related to its Ni-Co-PGE potential.

The Company is also announcing the immediate start of a 1,000 meter drill program as a direct follow-up to the recent drill intersection of 0.25% Ni over 48 meters at its 100% owned Goudreau Project in the northeast of Ontario. Results from this program are expected to provide additional intersections of ultramafic nickel units.

Strong points:

  • Intention to transfer Ni-Co-PGE products from the Goudreau Project to a newly incorporated subsidiary, Western Nickel, to realize the full value of the Goudreau Project.
  • Western Nickel will become a publicly traded company.
  • Immediate start of a 1,000 meter drill program as a direct follow-up to the recent 48 meter 0.25% Ni drill intersection in MTU-22-14.
  • Drilling program to test the strongest part of the magnetic anomaly north of MTU-22-14 and a separate 800 meter long ultramafic body located a short distance along strike to the west.

“The Spin-Out of Western Nickel by Manitou will be very positive for all shareholders of the Company,” said Richard Murphy, President and CEO of Manitou. “Our shareholders will receive new shares of a pure nickel-cobalt-PGE company for no additional consideration, as well as a continuing indirect stake in Western Nickel via the retained stake in the Manitou spin-off company. As a result, they will benefit from the growth potential of a gold-focused company, as well as a Ni-Co-PGE company – all within the 366 sq km Goudreau project. »

The Nickel-Cobalt-PGE Commodity Spin-Out remains subject to the ongoing review and discretion of Manitou’s management and Board of Directors. It is currently expected that the Spin-Out will be effected by way of a plan of arrangement, and Manitou will retain up to 19.9% ​​of the issued and outstanding Western Nickel shares at closing. However, the final terms of the Spin-Out and the decision to proceed remain subject to further tax and market considerations, and the Company expects to provide a further update to shareholders in the next fiscal quarter.

Recent results from the Company’s first drill program in the western extension of the Baltimore Deformation Zone demonstrate the untested potential for significant nickel mineralization, comparable to Canada Nickel Company’s Crawford deposit, located in Timmins, and the of Dumont nickel, located in Quebec. As reported on June 13, 2022, Manitou intersected a 48 m wide interval of strongly serpentinized ultramafic rocks grading 0.25% Ni and 100 ppm Co from 29.0 m after reaching bedrock (Figure 1). The hole was drilled into nickel mineralization near the southern margin of the ultramafic intrusion and therefore did not intersect the full width of the mineralized zone. The nickel mineralization was in the mineral awaruite, which is a nickel-dominant iron alloy that can be found in the serpentinized ultramafic intrusive rocks prevalent at the Goudreau Project.

Figure 1: Borehole plane map on total field magnetic intensity map with linear color stretch (red – magnetic top, blue – magnetic bottom)

The upcoming drill program will test the strongest part of the magnetic anomaly which lies north of MTU-22-14 (Figures 2). Additionally, the Company will target a magnetic anomaly over 800 meters long and over 200-300 meters wide over a short distance along strike west of MTU-22-14. Drilling will begin in the next few days.

The property-scale geophysical and geological interpretation performed to date suggests that the emplacement of the ultramafic intrusions was controlled by laterally extending oblique faulting corridors. The high-pressure hydrothermal conditions in these fault corridors were likely an important factor in promoting serpentinization reactions that resulted in the formation of magnetite and high-purity nickel alloys and nickel sulphides. According to the geophysical interpretation, the northeast part of the Goudreau project covers more than 50 kilometers of strike length of potential fault corridors with ultramafic intrusions that have never been tested by drilling. Individual bodies are up to 1.5 kilometers long and 200 meters wide.

In addition to nickel potential, ultramafic rocks and their serpentine products are highly reactive with carbon dioxide in surface conditions and have the potential to actively sequester carbon, thereby reducing greenhouse gas emissions. With a Canadian carbon credit system already in place and the potential for ultramafic carbon capture, there could be potential for additional revenue streams.

Figure 2: Cross-section showing the intersection of nickel drilling in hole MTU-22-14 and the planned drilling that will test the strongest part of the magnetic anomaly. Superimposed drillings on magnetic intensity reversal (red – magnetic high, blue – magnetic low)

Completion of the Spin-Out is subject to a number of conditions, including, but not limited to, TSX Venture Exchange approval and, if applicable, court and disinterested shareholder approval, as well as other closing conditions and the final approval of the Company’s Board of Directors. The Spin-Out cannot be closed until applicable regulatory, court and shareholder approvals have been obtained. There is no guarantee that the spin-off will be carried out as proposed, or at all.

In the event that Manitou decides to proceed with the Spin-off, further details will be provided in an information document to be prepared and filed in this regard. Investors are cautioned that, unless otherwise specified in the information document to be prepared in connection with the Spin-Out, any information published or received regarding the foregoing matters may not be accurate or complete and should not be relied upon. Trading in the Company’s securities should be considered highly speculative. The TSX Venture Exchange Inc. has in no way passed on the merits of the proposed spin-off and has neither approved nor disapproved of the contents of this press release.

Manitou’s main strategic shareholders include Alamos Gold Inc. (TSX:AGI; NYSE: AGI) at 19.9% and O3 Mining Inc. (TSX.V: OIII; OTCQX: OIIIF) at 9.9%, each calculated individually on a partially diluted basis.

The Company also announces that it has granted 1,000,000 stock options at an exercise price of $0.10 to an employee of the Company. The options vest immediately and have a term of five years. This grant replaces an equal number of options previously issued to the employee, which expired earlier this year.

Manitou also reports that it has become aware of unusual market activity in the trading of the Company’s common shares. Although the Company does not normally comment on market activity or market speculation, the Company confirms that it is not aware of any material corporate developments that could account for the trading activity. unusual.

The Ontario Securities Commission (“CSOs”) and the Investment Industry Regulatory Organization of Canada (“IIROC”) encourage the public to submit advice on potential abusive trading in the securities of Ontario reporting issuers, including illegal insider trading, market manipulation or abusive short selling. Accordingly, anyone with first-hand knowledge or other specific and credible evidence regarding the aforementioned issues is strongly encouraged to submit a tip.

To learn more about the CSO’s whistleblower program, including eligibility for awards and how to submit a report, interested parties may contact the CSO’s dedicated whistleblower hotline at 1-888 -OSC-5553 (1-888-672-5553), or access more information at

IIROC is the national self-regulatory organization that oversees all investment dealers and their trading activities in Canada’s debt and equity markets. IIROC can be contacted through its whistleblower hotline at 1-866-211-9001, and more information about IIROC’s whistleblower program is available at https://www.iiroc. ca/rules-and-enforcement/whistleblower-service.

Richard Murphy, P.Geo is the qualified person responsible for the technical content contained in this release. He has reviewed and approved the content hereof.

For more information about Manitou Gold Inc., contact:

Richard Murphy, CEO
Telephone: 1 (705) 698-1962
Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements – Certain information in this press release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including whether or not the Company will proceed with the Spin-Out as currently proposed or not at all, the conditions and the planned structure of the Spin-Out, the number of shares that may be retained by Manitou in connection with the Spin-Out and the parties’ ability to satisfy closing conditions and receive necessary approvals, as well as the prospective nature of the mineral interests associated with the Goudreau property. These statements should not be construed as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those implied by such statements. Although these statements are based on management’s reasonable assumptions, there can be no assurance that the Split will occur or that, if the Split does occur, it will be completed on the terms described above. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances, except as required by law.


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