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Spearmint mulls spinout of lithium assets

8th January 2021

By: Marleny Arnoldi

Deputy Editor Online

     

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Canadian exploration company Spearmint Resources is considering the transfer of its lithium exploration projects to a new subsidiary, which would be spun out pro rata to the shareholders of Spearmint.

The company has advised that a spinout of this sort, if it proceeds, would be subject to several conditions including board approval, Canadian Securities Exchange listing requirements, assessment of legal and tax ramifications, shareholder approval and the availability of financing for the new subsidiary.

Spearmint president James Nelson explains that the rationale for this potential spinout is to reward shareholders of record, as management feels that the total assets of Spearmint are not being valued accordingly.

“By potentially spinning out the lithium assets pro rata to Spearmint shareholders, we feel this would add value for our shareholders and create two standalone companies that will both have an ability to create value based on the assets they individually hold.

“Lithium in Nevada has seen a massive resurgence as witnessed by the rise in Cypress Development Corporation and Noram Ventures, who we share the Nevada lithium clay deposit with.

"We are awaiting the final results for the last seven holes from our drill programme in Nevada, of which we had our highest results to date and eagerly look forward to the remaining drill results,” he notes.

Besides its lithium assets, the company has various gold, platinum, palladium, gold, nickel and vanadium projects.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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