MGX Minerals Inc (CSE:XMG, OTCQB:MGXMF) announced plans to spin-out its subsidiary ZincNyx Energy Solutions Inc to realise value.
The latter has developed a modular storage system using zinc and air to store energy in the form of zinc particles and has so far been awarded 20 patents.
It aims to bring energy storage to the mass market and offer lower-cost, long duration batteries capable of simultaneous charge and discharge.
The move will result in a separate publicly traded company primarily owned by MGX and its shareholders, while MGX also plans to dividend a portion of shares in ZincNyx as part of a one-time distribution to existing shareholders.
"The scale of the opportunity and the value of the intellectual property, now in excess of 20 issued patents developed by ZincNyx, has set up an ideal scenario for a spinoff transaction and return of value to shareholders through partial dividend of shares," said MGX chief Jared Lazerson.
"This is an important stand-alone technology that needs to grow unbridled on the global stage, a public listing creates this platform."
Currently, ZincNyx is looking at the possibility of replacing marine diesel engines with electric engines and zinc-air fuel cells.
MGX had more news out yesterday.
The firm outlined plans for the spring drill programme at its Case Lake lithium property in Ontario where work will kick off next month (May).
The work is being carried out by joint venture partner Power Metals.
The spring program will total 8,000 meters (m) and target new spodumene pegmatite dykes between the main dyke and the south dyke.
MGX shares are currently up 4.04% in Toronto at C$1.03.