Usha Resources Ltd (TSX-V:USHA) has announced that its shareholders have approved the previously announced proposed spin-out of the company’s wholly-owned subsidiary, Formation Metals Inc (FMI), through a plan of arrangement.
The special resolution was approved at the company’s annual general and special meeting (ASGM) of its shareholders which was held on December 16, 2022, by 99.76% of the votes cast.
Upon completion of the plan of arrangement and the share exchange under it, each Usha shareholder will receive 1 common share of FMI with respect to every 5 common shares of Usha held on the share distribution record date. Usha shareholders will continue to own the same number of Usha common shares as they did on the share distribution record date.
READ: Usha Resources identifies evaporite crystals as drilling at Jackpot Lake Lithium Brine Project gets underway
FMI will then hold the company’s interest in the Nicobat Nickel Project and will focus on the advancement of this project, while Usha will retain and focus on the advancement of its exploration projects in the USA, including the Jackpot Lake Lithium Brine Project where the company has begun its drilling program.
The company said it will proceed with completing closing conditions of the arrangement, including seeking final approval by the Supreme Court of British Columbia and the TSX Venture Exchange (TSXV) in January 2023. The arrangement cannot be completed until these conditions have been met.
The company also announced the results of voting on other resolutions at its 2022 AGSM held on December 16, 2022.
A total of 20,343,901 common shares were voted at the ASGM representing 57.76% of the votes attached to all outstanding common shares of the company. Shareholders voted in favour of all items of business before the ASGM, including the election of all director nominees.
Jackpot Lake Lithium Brine Project update
Usha also provided an update on drilling activities at its Jackpot Lake Lithium Brine Property. It said the drill is now at the 440-metre level and its exploration team has continued to encounter multiple zones of evaporite crystals as interbeds, veining, and inclusions within lacustrine sediments comprised of silty to sandy clays, clay sands and loams.
Of note, halite has been identified, further supporting the presence of a brine environment at depth as halite would not form under freshwater conditions.
The company said it anticipates providing additional updates throughout January 2023.
Usha Resources is a North American mineral acquisition and exploration company focused on the development of quality battery and precious metal properties that are drill-ready with high-upside and expansion potential.
Based in Vancouver, BC, Usha’s portfolio of strategic properties provides target-rich diversification and consist of Jackpot Lake, a lithium project in Nevada; Nicobat, a nickel-copper-cobalt project in Ontario; and Lost Basin, a gold-copper project in Arizona.
Contact the author at jon.hopkins@proactiveinvestors.com