Edison Lithium Corp. (TSX-V:EDDY, OTCQB:EDDYF) told investors it has received conditional approval from the TSX Venture Exchange for the proposed plan of arrangement and spin-out of its cobalt assets in northeastern Ontario, which include the Kittson Cobalt Property.
The company said the spin-out will be achieved under an arrangement agreement between it and Edison Cobalt Corp (SpinCo), a wholly-owned subsidiary.
If the arrangement agreement receives the final acceptance of the TSX-V, as well as the approval of shareholders and the British Columbia Supreme Court, Edison said it will spin out SpinCo to its shareholders and the Kittson-Cobalt Property will be transferred to SpinCo in exchange for shares in the capital of SpinCo. The SpinCo Shares will be distributed to Edison shareholders on a pro-rata one-for-one share basis.
There will be no change in Edison shareholders' holdings in the company and if the spin-out is completed, shareholders will own shares in both companies, Edison said.
The company said it plans to list SpinCo shares on the exchange, subject to the new company fulfilling all the necessary requirements. Additionally, it plans to undertake a private placement financing to raise gross proceeds of up to $1.5 million at a price of $0.05 per security at a later date subject to market conditions.
"We are pleased with this news which advances the process of our being able to provide two 'pure play' vehicles in the important battery metals space," CEO Nathan Rotstein commented in a statement.
Edison Lithium is a Canadian-based junior mining exploration company focused on the procurement, exploration and development of cobalt, lithium, and other energy metal properties.
Contact the author at stephen.gunnion@proactiveinvestors.com