It had announced the planned spin-out in June of its subsidiary, which had the option to acquire 100% of the Chambers Settlement gold project in New Brunswick from Avalon Gold Resources.

Alma then acquired the Clarence Stream North gold project in New Brunswick, which has become its flagship exploration project, in July.

Red Lake described Clarence Stream North as contiguous to Galway Metals' Clarence Stream gold project.

At the time, Red Lake CEO Ryan Kalt said the addition positioned Alma "as an early mover in an emerging and up-and-coming gold exploration camp in North America".

Red Lake is focused on its Whirlwind Jack project, adjacent to Great Bear Resources' Dixie project in Ontario.

It also has the Fenelon North gold project, which shares a border with Wallbridge Mining's Fenelon project, in Quebec.

After the Alma arrangement, Red Lake shareholders would hold one new Red Lake share and 0.95 of a spinco share for every Red Lake Class A share held.

The company expected its distribution of common shares to Alma Gold would occur around November 6.

Red Lake last raised C$750,000 at 30c per unit in July.

Its shares (CSE:RGLD) came off a one-year high yesterday, having ranged from 12-42c over the past year.

They closed down 8.4% to 38c, valuing it at $12.1 million (US$9.1 million).