RRI is down over 30% this week, despite no negative news. This may be a classic case of value dislocation ahead of a corporate event.
📦 What’s happening?
Riverside is spinning out its Ontario gold assets into a new company, Blue Jay Gold Corp. Every RRI shareholder will receive 1 Blue Jay share for every 5 RRI shares held. These new shares are expected to be listed soon.
🧠 Why it matters:
Spin-outs often unlock hidden value by allowing each entity to focus on a clear strategy. The market sometimes misprices the parent company temporarily, creating an opportunity for informed investors.
📉 The recent decline could reflect:
Confusion around the transaction;
Weak hands exiting during the restructuring;
Lack of immediate liquidity for the spin-out shares.
⚒️ Riverside retains multiple strong projects in Mexico, significant working capital, and a royalty on Capitan Silver’s asset — another successful spin-out.
📊 With a market cap of only CAD $16.8M, the risk/reward appears skewed to the upside, especially if technicals confirm a reversal.
🔍 Worth watching as Blue Jay listing approaches. This setup reminds me of other profitable spin-out plays in the junior gold space.
📦 What’s happening?
Riverside is spinning out its Ontario gold assets into a new company, Blue Jay Gold Corp. Every RRI shareholder will receive 1 Blue Jay share for every 5 RRI shares held. These new shares are expected to be listed soon.
🧠 Why it matters:
Spin-outs often unlock hidden value by allowing each entity to focus on a clear strategy. The market sometimes misprices the parent company temporarily, creating an opportunity for informed investors.
📉 The recent decline could reflect:
Confusion around the transaction;
Weak hands exiting during the restructuring;
Lack of immediate liquidity for the spin-out shares.
⚒️ Riverside retains multiple strong projects in Mexico, significant working capital, and a royalty on Capitan Silver’s asset — another successful spin-out.
📊 With a market cap of only CAD $16.8M, the risk/reward appears skewed to the upside, especially if technicals confirm a reversal.
🔍 Worth watching as Blue Jay listing approaches. This setup reminds me of other profitable spin-out plays in the junior gold space.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.