2020-10-14

Southern Arc Update: Spin-Off Share Totals

1.77 common shares of Japan Gold Corp. ("Japan Gold"); 0.12 common shares of Rise Gold Corp. ("Rise Gold"); and 0.07 ordinary shares of Adriatic Metals plc ("Adriatic Metals").
I had Adriatic shares slightly higher, but I was calculating through the Tethyan holdings that were exchanged for Adriatic recently. Based on the trading price of these stocks, the SA spinouts are worth 90 cents. SA is trading at 88 cents, and it will still hold some assets including millions of warrants on Japan Gold.

The most interesting part of this deal for me is SA and JG have the same CEO, and I think JG is a compelling speculation that needs to focus on getting some drill results. Hence, the big win scenario beyond the arbitrage play (I bought at 70 cents) will be the spinoff acting as a catalyst for Japan Gold. Short-term, there could be selling pressure if some shareholders exit with a profit following the spinoff.

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