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An announcement from Riverside Resources ( (TSE:RRI) ) is now available.
Riverside Resources Inc. has announced the spin-out of its subsidiary, Blue Jay Gold Corp., with shareholders set to receive new shares of both Riverside and Blue Jay. This corporate action aligns with Riverside’s project generator business model, allowing Blue Jay to pursue its growth strategy independently while Riverside retains exposure through asset royalties. The spin-out is expected to provide Riverside shareholders with direct value and early-stage investment opportunities as Blue Jay prepares for a public listing on the TSX Venture Exchange.
Spark’s Take on TSE:RRI Stock
According to Spark, TipRanks’ AI Analyst, TSE:RRI is a Neutral.
Riverside Resources faces significant financial challenges with no revenue and negative cash flows, impacting its overall score. Despite these issues, positive technical momentum and strategic corporate actions, such as the Blue Jay Gold spin-out, offer some optimism. Valuation concerns persist with a negative P/E ratio, indicating potential risks.
To see Spark’s full report on TSE:RRI stock, click here.
More about Riverside Resources
Riverside Resources Inc. operates in the mining industry, focusing on project generation and exploration. The company is known for its strategic approach in developing mineral assets, primarily in North America, and has a history of creating value through spin-outs and partnerships.
Average Trading Volume: 54,037
Technical Sentiment Signal: Buy
Current Market Cap: C$13.46M
Learn more about RRI stock on TipRanks’ Stock Analysis page.