10/21/2014 06:46 EDT | Updated 12/21/2014 05:59 EST

Almaden to spin off exploration assets, focus on Ixtaca gold-silver project

VANCOUVER - Almaden Minerals Ltd. (TSX:AMM) plans to spin off its interests in several exploration projects in order to focus on its Ixtaca gold-silver project in Mexico's Puebla state.

The non-core assets will be transferred to a new company, run by Almaden's current executive team, and the spinoff company's shares will be distributed to Almaden's shareholders.

Among the assets being spun off are royalties on an advanced exploration project in Canada that's being operated by Gold Mountain Mining Corp. (TSXV:GUM), and a portfolio of 21 other royalty projects throughout North America.

The new company will also own 100 per cent of the El Cobre copper-gold exploration projects in Mexico and the Willow gold-silver exploration project in the United States, as well as a portfolio of 20 other projects.

Almaden said it expects its shareholders to receive 0.6 of a share in the new company and one share of a "new" Almaden for each of their current Almaden shares, subject to approvals from a two-thirds majority of its shareholders and the B.C. court.

The company's shares closed Monday at $1.42 on the Toronto Stock Exchange.