Impact: Very Positive
Mawson Gold (MAW) announced a restructuring plan to split into three separate companies. Shareholders are expected to receive: 1) an option to gain interest in the new vehicle, Springtide Capital Acquisitions 7 Inc. (Private), designed to advance the Rajapalot Au-Co project in Finland, 2) Mawson’s Southern Cross Gold (ASX:SXG, Not Rated) shares, and 3) see Mawson return focus to its roots as an early-stage exploration company with priority on Au and U3O8 exploration in Sweden. Mawson will also revert from the TSX to the TSXV to reflect a new business plan, as it advances its option and JV properties. We see this split as a positive for existing shareholders, as they get the option to continue to own interest in MAW’s sum of the parts. They should be able to own SXG directly and have an option to participate in Rajapalot ownership. Considering this has been a relatively unloved asset, we see this move as involving shareholders that are interested in moving the Finish asset forward. We see potential to reach out to new investors that would be interested in project development without the distraction of exploration. MAW should be cashed up to carry out early-stage exploration, and with policy in Sweden swinging towards a potential removal of the U ban, we could see the stock re-rate as it re-enters an active uranium sector.
