Strategic Metals Ltd. on Dec. 19 said its board unanimously approved a spinout of its Eureka, Triple Crown and Treble precious metals projects in Canada's Yukon Territory to Trifecta Gold Ltd.

The new precious metals-focused company will explore highly prospective projects beginning with four — the wholly owned Eureka, Triple Crown and Treble properties, and Trident — which consist of 195 wholly owned claims and two optioned properties comprising another 330 claims.

Under the arrangement, existing Strategic shareholders will get over 90% of Trifecta shares on a pro rata basis.

Trifecta's management will include Dylan Arnold-Wallinger as president and CEO, Larry Donaldson as CFO and Glenn Yeadon as corporate secretary. Trifecta's board will comprise Richard Drechsler, Graham Downs, Bruce Kenway, Rosie Moore and Bradley Shisler.

The closing of the transaction is subject to Trifecta obtaining conditional approval for the listing of its common shares on the TSX Venture Exchange, as well as approval from Strategic shareholders at a February 2017 meeting.