Cruz Battery Metals Announces Strategic Corporate Restructuring with Makenita Spinout

Cruz Battery Metals Corp. has confirmed a strategic move to transfer significant mining assets and reorganize share capital in a robust push toward maximizing shareholder value. This announcement follows the arrangement agreement with Makenita Resources Inc., focusing on the spin-out of the Hector Silver-Cobalt Project. The project, spread across 5,542 acres within the Timiskaming District of Ontario, is a cornerstone in this transformative strategy.
“You must be a shareholder of record on October 29, 2024, to benefit from the free Makenita shares, which allow you to keep your Cruz holdings while gaining additional exposure without extra cost,” said James Nelson, President of Cruz. He highlighted the company’s financial readiness to leverage emerging opportunities, emphasizing optimism for both Cruz and Makenita in the strengthening junior market sector.
Scheduled for December 11, 2024, the shareholder meeting will discuss and likely approve this arrangement, which is pivotal for Cruz’s focus shift towards its promising US-based lithium and cobalt projects. The plan will see the Hector Property becoming Makenita’s primary asset, compliant with National Instrument 43-101 standards, with a separate reporting status in key Canadian jurisdictions.
As part of the restructuring, Cruz shareholders will exchange existing shares for new class voting shares and receive additional Makenita shares, maintaining their proportional investment across both entities. Furthermore, Makenita plans to raise about $500,000 to support its operations and has begun steps to list its shares on the Canadian Securities Exchange.
The transaction, set to conclude by the end of 2024, hinges on several approvals, including a final court endorsement and a two-thirds shareholder vote. The Company anticipates these events aligning with their strategic objectives, aiming to enhance growth and shareholder returns in the burgeoning battery metal market.
For further details, interested parties and accredited investors are encouraged to contact Jason Gigliotti, designated President of Makenita. Additional information about the arrangement and company updates can be found in Cruz’s earlier releases from August and September 2024.
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