Usha Resources Ltd (TSX-V:USHA) said it has obtained the final order from the Supreme Court of British Columbia approving the previously announced proposed spin-out of the company’s wholly-owned subsidiary, Formation Metals Inc (FMI).
The company said it now will proceed with completing closing conditions of the plan of arrangement, including seeking final approval by the TSX Venture Exchange (TSXV). The arrangement cannot be completed until these conditions have been met.
Upon completion of the arrangement and the share exchange under the arrangement, each Usha shareholder will receive one common share of FMI with respect to every five 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.
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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.
The company said drilling at the Jackpot Lake Lithium Brine Property is scheduled to resume shortly, with exploration at borehole JP-1, which was paused at the 440 metres level in December, set to continue to a target depth of approximately 600 metres before moving on to the next drilling location.
The company anticipates providing additional updates throughout January and February 2023 as its exploration program progresses.
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, British Columbia, 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