Toronto-listed Silver Elephant Mining on Thursday announced a reorganisation of the company, spinning out its nickel and vanadium assets, as well as creating a separate battery metals royalty subsidiary.
The Gibellini vanadium project, in Nevada, the Manitoba-based Minago nickel project and certain battery metals royalties would be spun out, each into its own entity.
Silver Elephant would continue to hold the Pulacayo silver and El Triunfo gold/silver projects in Bolivia, as well as about 30% of the issued and outstanding battery metals royalty shares as a long-term investment.
Each shareholder would receive one share of the Minago SpinCo, one share of the Gibellini SpinCo and two Battery Metals Royalties SpinCo shares for every share of Silver Elephant.
The company said the share distribution offered shareholders direct participation in the growth and upside in each of the four companies’ businesses – silver, vanadium, nickel and royalties.
Each spinco is expected to list on a Canadium securities exchange.
Silver Elephant would be managed by Joaquin Merino as VP for exploration, Robert van Drunen as interim COO and John Lee as CEO.
Danniel Oosterman would be interim CEO and Van Drunen COO of Minago. Ron Espell would be CEO of Gibellini and Lee CEO of Battery Metals Royalties.
Silver Elephant's stock closed 4.4% down on Thursday at C$0.22 a share.