Riverside Resources Inc.: Spin-Out of Blue Jay Gold Corp. Receives Conditional Approval
Vancouver, British Columbia – In a significant development for Riverside Resources Inc. (TSXV: RRI, OTCQB: RVSDF, FSE: 5YY), the company announced on February 24, 2025, that it has received the conditional approval of the TSX Venture Exchange for the spin-out of Blue Jay Gold Corp. (“Blue Jay”) through a statutory plan of arrangement (“Arrangement”).
Arrangement Details
The Arrangement, which was previously announced on December 15, 2024, will see Blue Jay Gold Corp. become a separate, publicly-traded entity. The spin-out will be carried out in accordance with the arrangement provisions of the Business Corporations Act (British Columbia).
Shareholders of Riverside will receive one common share of Blue Jay for every 10 common shares of Riverside they own as of the record date. The distribution of the Blue Jay shares is expected to occur on or about April 30, 2025.
Shareholder Approval
The Arrangement will be subject to the approval of at least 66 2/3% of the votes cast by Riverside shareholders at the upcoming Annual General and Special Shareholder Meeting (“Meeting”) scheduled for March 31, 2025. The Meeting will also consider other business items, including the appointment of directors and the approval of the Company’s audited financial statements.
Impact on Riverside Shareholders
Riverside shareholders will receive one Blue Jay share for every 10 Riverside shares they own, effectively increasing their exposure to gold exploration and development opportunities. The spin-out is expected to enhance shareholder value by allowing investors to choose which company to follow based on their investment preferences.
- Shareholders who prefer a more diversified portfolio may choose to retain their Riverside shares, gaining exposure to Riverside’s diverse portfolio of projects in various commodities.
- Those with a greater interest in gold may opt to receive and hold the Blue Jay shares, focusing on the gold exploration and development potential of that company.
Impact on the Gold Industry
The spin-out of Blue Jay Gold Corp. from Riverside Resources Inc. could have a positive impact on the gold industry, as it highlights the potential for further consolidation and specialization within the sector. Smaller exploration companies may look to follow a similar path, creating more focused entities and providing investors with greater choice and clarity.
Conclusion
Riverside Resources Inc.’s receipt of conditional approval for the spin-out of Blue Jay Gold Corp. marks an important step forward for both companies. The Arrangement, subject to shareholder approval at the upcoming Meeting, will provide Riverside shareholders with the opportunity to increase their exposure to gold exploration and development opportunities. Additionally, it could set a precedent for further consolidation and specialization within the gold industry, offering investors more focused entities and enhanced choices.
As always, investors are encouraged to consult their financial advisors and carefully consider their investment decisions based on their individual circumstances and risk tolerance.
