Less than a month after receiving encouraging results from its Clayton Valley lithium clay project in Nevada,
Spearmint Resources announced the company is considering the transfer of its lithium exploration projects to a new subsidiary.
In a press release, Spearmint said the subsidiary would be spun out pro-rata to the shareholders of record of Spearmint.
The miner also said that the board of directors is evaluating the merits of this transaction and will report on any developments and specifics as management deems timely.
In its announcement, Spearmint also emphasized that there is no assurance that a spinout will take place as it would be subject to several conditions that include board approval, satisfying the Canadian Securities Exchange listing requirements, the assessment of legal and tax ramifications, determining final details of the transaction, receipt of all regulatory approvals, any required shareholder approval, the availability of financing for the new subsidiary, and market conditions.
“The rationale for this potential spinout is to reward our shareholders of record as management feels that the total assets of Spearmint are not being valued accordingly,” the company’s president, James Nelson, said in the statement. “By potentially spinning out the lithium assets pro-rata to Spearmint shareholders of record, we feel this would add value for our shareholders and create two stand-alone companies that will both have an ability to create value based on the assets they individually hold.”
According to Nelson, lithium in Nevada has seen a massive resurgence as witnessed by the rise in
Cypress Development and
Noram Ventures, with whom Spearmint shares the Nevada lithium clay deposit.
“We are awaiting the final results for the last seven holes from our drill program in Nevada, of which we had our highest results to date and eagerly look forward to the remaining drill results,” the executive said.
This story first appeared on www.MINING.com.
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