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VANCOUVER - Rio Grande Resources, a spinoff from Foremost Clean Energy Ltd. (NASDAQ: FMST) (CSE: FAT), commenced trading on the Canadian Securities Exchange (CSE) today under the ticker symbol "RGR." The listing follows the final approval for Rio Grande’s common shares to be traded, marking a significant milestone for the company, which focuses on the development of gold and silver assets in New Mexico. Foremost Clean Energy, with a market capitalization of $10.4 million, has seen its stock decline over 56% in the past year according to InvestingPro data.
Jason Barnard, President and CEO of Foremost Clean Energy, expressed optimism about the spinout, highlighting the high-grade gold and silver samples previously discovered on the property. With the recent uptick in precious metal prices, Rio Grande Resources is expected to attract investor interest as these commodities are often seen as a hedge against inflation. According to InvestingPro, Foremost Clean Energy currently shows weak financial health metrics, with a concerning current ratio of 0.14 and short-term obligations exceeding liquid assets.Want deeper insights into mining companies? InvestingPro subscribers get access to over 10 additional financial health indicators and exclusive ProTips for mining sector investments.
Rio Grande Resources holds a 100% interest in the Winston Group of Properties, which includes historic past-producing mines with notable gold and silver yields. The properties, located in the Black Range/Chloride Mining District, have yielded samples with gold assays up to 41.5 grams per ton (g/t) and silver assays up to 4,610 g/t.
The company has outlined plans to initiate a modern exploration program at the Winston Property, employing advanced geophysical techniques and detailed 3D digital modeling for accurate drill targeting. The exploration will include geological mapping, sampling, and structural analysis. Rio Grande anticipates a 3,000-foot diamond drilling program to test the depth and strike extensions of known mineralization.
The technical information in the press release has been reviewed and approved by Michael Feinstein, PhD, CPG, a Qualified Person as defined by Canadian National Instrument 43-101-Standards of Disclosure for Mineral Projects.
Foremost Clean Energy, Rio Grande Resources’ parent company, is an emerging North American uranium and lithium exploration company with interests in several properties across the Athabasca Basin region of northern Saskatchewan and lithium projects in Manitoba and Quebec. The company’s mission is to make significant discoveries in collaboration with industry partners. With its next earnings report due on February 13, 2025, investors should note that analysts don’t expect profitability this year, according to InvestingPro forecasts.
This news article is based on a press release statement and provides a factual overview of Rio Grande Resources’ entry into the public market and its exploration plans. No forward-looking statements from the press release are included, as they cannot be verified as facts at this time.
In other recent news, Foremost Clean Energy Ltd. has announced its plan to spin off its gold and silver assets into a new public entity, Rio Grande Resources Ltd. This move is set to be finalized on January 30, 2025. Foremost shareholders are expected to receive one new common share of Foremost and two common shares of Rio Grande for each share held as of January 29, 2025.
This strategic decision aims to allow Foremost to focus on its uranium and lithium exploration endeavors, particularly in the Athabasca Basin and Manitoba. Jason Barnard, President and CEO of Foremost, has expressed optimism for the spin-out, citing the potential for increased shareholder value and distinct growth opportunities for both companies.
The new shares of Foremost will continue trading under the existing ticker symbols on the Nasdaq and CSE, with a new CUSIP number. Rio Grande shares have received conditional approval to list on the CSE under the ticker symbol RGR, pending satisfaction of the exchange’s listing requirements. The commencement date for trading of Rio Grande shares will be announced following final approval.
These recent developments come as part of Foremost’s broader strategy to bolster its position in the North American uranium and lithium markets. Shareholders and warrant holders will need to comply with certain instructions and terms to receive their new shares. The detailed information about the spin-out is available in the company’s management information circular.
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