Orecap (TSXV:OCI) Forms Strategy to Spin Out Gold Assets in Kirkland Lake Region

Highlights

• Orecap announces intent to spin out its gold exploration assets into new subsidiaries
• Focus to center on gold properties in the Kirkland Lake region of Ontario
• Initiative aims to unlock value from underrecognized physical gold holdings

Orecap Invest Corp. (TSXV:OCI), active in exploration-stage mining, is advancing plans to spin off a portion of its gold assets into new subsidiaries. This move aligns with the broader trend in TSX Mining stocks, focusing on streamlining operations and enhancing transparency around core holdings.

Spin-Out Plans for Gold Projects

Orecap has outlined its intention to transfer certain high-quality gold exploration and development properties into distinct corporate structures. The primary focus is on assets located in the Kirkland Lake region, an area with a long-standing history of mineral activity and geological significance. These spin-outs are intended to provide greater visibility and distinct identities to the assets, which remain underrepresented in the company's current market valuation.

Strategic Rationale Behind the Corporate Move

Orecap operates under a business model that emphasizes asset origination, development, and management team deployment rather than direct project execution. As such, physical site development is typically carried out by separate entities following Orecap’s early-stage work. This structure allows the company to concentrate on identifying new geological prospects, developing corporate frameworks, and overseeing early-stage progress before handing over operations to specialized teams.

Currently, market valuation appears closely tied to the company’s equity portfolio, with minimal reflection of its gold holdings, especially those situated in the Kirkland Lake area. Through the spin-out initiative, Orecap aims to create more distinct value recognition for each segment of its holdings without altering its investment issuer identity.

Track Record of Asset Origination and Structuring

Orecap has previously structured similar initiatives involving early-stage resource companies across different metal categories. Examples include projects aligned with companies such as Awalé, American Eagle, Cuprum, Mistango, and Kintavar. Each of these followed a comparable model, beginning with asset identification and advancing through funding, team assembly, and early-stage planning before spinning out into stand-alone operations or partnerships.

Anticipated Sector Positioning and Asset Visibility

This latest move occurs against a backdrop of broader attention toward value in the metals sector. With macroeconomic factors influencing market dynamics, companies like Orecap are focusing efforts on maximizing the visibility and valuation alignment of their resource holdings. By isolating the gold assets into distinct corporate vehicles, the company aims to provide greater clarity around each project’s identity, development stage, and geological characteristics.

Continued Development and Asset Sourcing

While the Kirkland Lake gold projects represent the current focus, Orecap has also indicated that it may pursue the origination of new physical assets in line with its established model. The company remains actively engaged in sourcing early-stage mineral projects and developing them through corporate structuring, funding, and management placement. This cycle supports the overarching framework of unlocking value without engaging in direct land development activities.

Alignment with Corporate Structure and Market Conditions

The planned spin-outs reflect a broader industry practice of aligning asset types with appropriate corporate vehicles. By segmenting its gold exploration interests into separate entities, Orecap is reinforcing its core operational identity as an investment issuer. This approach allows for greater operational clarity, targeted development strategies, and market-based discovery of individual asset value within the broader mining sector.