Cruz Battery Metals Announces Strategic Spin-Out of Hector Property
Cruz Battery Metals Corp. has confirmed plans to transfer its Hector Silver-Cobalt Project to its wholly-owned subsidiary, Makenita Resources Inc., as part of a broader strategic move. The arrangement will also involve the distribution of Makenita shares to Cruz shareholders, marking a key milestone in Cruz’s expansion strategy.
“You must be a shareholder of record on October 29, 2024, to receive the free shares of Makenita,” said James Nelson, President of Cruz. “Not only will you gain exposure to Makenita, but you will also maintain 100% of your Cruz shares. This is a significant bonus for shareholders without any additional cost to them.” Nelson also noted Cruz’s financial strength, with over a million dollars in the treasury, positioning the company to maximize shareholder value in both the short and medium term.
The Hector Property, located in Ontario’s Timiskaming District, consists of 126 contiguous unpatented mineral claims spanning 5,542 acres. Once the transfer is complete, Makenita will focus on developing this project, with Cruz continuing to advance its U.S. properties, including the Solar Lithium and Clayton Valley Lithium Projects in Nevada, and the Idaho Cobalt Belt Project.
The arrangement includes the reorganization of Cruz’s share capital and a securities exchange in which Cruz shareholders will receive shares in Makenita while maintaining their interest in Cruz. Each existing Cruz share will be converted into a new class of voting shares, alongside the allocation of Makenita spin-out shares. This structure aims to ensure shareholders benefit from both entities’ growth prospects.
Makenita is set to become a separate reporting issuer in Alberta, British Columbia, and Ontario. Following the spin-out, Makenita intends to list its shares on the Canadian Securities Exchange (CSE) and will raise approximately $500,000 to finance exploration activities on the Hector Property.
To facilitate the arrangement, Cruz will seek approval from its shareholders, with the meeting set for December 11, 2024. The company anticipates completing the spin-out by the end of the fourth quarter of 2024, subject to final approvals from the courts and regulators.
About Cruz Battery Metals Corp.
Cruz Battery Metals holds a diverse portfolio of projects across North America. Its flagship Nevada properties include the 4,938-acre Solar Lithium Project and the 240-acre Clayton Valley Lithium Project. In Ontario, Cruz’s Hector Property is near the town of Cobalt and is prospective for cobalt, silver, and diamonds. Additionally, Cruz has the 124-acre Idaho Cobalt Belt Project. The company continues to explore and expand its presence in critical mineral-rich regions across North America.
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