Canada Silver Cobalt Works Inc (TSX-V:CCW, OTCQB:CCWOF) told investors that the planned spin-out of its subsidiary Coniagas Battery Metals Inc has now been approved by the board of directors.
It is anticipated that the spin-out will be executed via a plan of arrangement, with some 37% of the Coniagas equity being redistributed to CCW shareholders via a special dividend – 11.7mln shares will be handed out, alongside warrants (one half per full Coniagas share).
CCW CEO Frank Basa will be appointed president and CEO of Coniagas, and, its initial focus will be the Graal property which is described as a grassroots nickel-copper-cobalt exploration project, located in northern Quebec.
It is envisaged that Graal will be the basis of an exploration and mining venture designed to supply the market for battery metals, whilst CCW will continue with its emphasis on precious metals.
“It is the company’s intention to develop Coniagas into a premier supplier to the EV market,” Basa said in a statement.
“Coniagas’ significant land package in northern Quebec, positive drill results, and the province’s supportive approach to resource development provides confidence that our shareholders are well positioned in CCW and Coniagas.”
CCW is on its way to becoming a pure precious-metal play, according to Basa.
“The two main silver and gold properties held by CCW are in mining friendly historical jurisdictions. Castle East has had eight high-grade silver vein structures identified and, with ongoing work, has the potential to identify additional mineralized structures. Silver grades of 89,000 gpt silver have been drilled at Castle East. Eby-Otto, the company’s gold prospect, is on the Larder Lake-Cadillac Break and is next to the high grade Maccassa mine in Kirkland Lake, Ontario where the company has recently completed a preliminary drill program where assays are still pending.
“CCW has also been accumulating shares in a company with an advanced gold deposit that is permitted for production with a positive PFS as a potential acquisition.”