Usha Resources Ltd (TSX-V:USHA) told investors it has now filed the 43-101 compliant technical report on its Nicobat nickel-copper-cobalt project in Ontario, as part of its previously reported planned spin-out of the asset.
As reported in May this year, the company wants to spin out the property to subsidiary Formation Metals Corp (FMC) after unanimous approval from the board.
When completed, Usha shareholders will own stock in two public companies - Formation Metals, which will be focused on Nicobat, a nickel-copper-PGE project in Dobie Township - and Usha Resources, which will focus on the US-based assets, including the Jackpot Lake lithium property.
The new 43-101 report documents and confirms results of historical prospecting and exploration completed by previous owners and recent data compilation, review and exploration completed by Usha. It also outlines the history, regional geology and exploration targets, and provides recommendations.
READ: Usha Resources announces finalized program team for near-term drill program at its Jackpot Lake lithium brine project
Nicobat sits 21 kilometres (km) south of New Gold's Rainy River mine, which hosts the Zone 34 nickel discovery, and historic exploration between 1952 and 1972 identified a non-compliant historic resource of 5.3 million tonnes (Mt) grading 0.24% nickel that contained a high-grade zone of around 225,000 tons grading 0.87% nickel (Ni).
Recent exploration has included over 4,000m of drilling that has confirmed high-grade nickel-copper shoots do exist and are considerably better than previously recorded in the historical drilling.
Under the spin-out deal, Usha shareholders will be issued one share of FMC for every five they own on a date to be determined. Holders of USHA options and warrants, who exercise their options and/or warrants before the share distribution record date, will also be entitled to receive one FMC share for every five USHA shares.
Completion is subject to a number of conditions, including approval by USHA shareholders at a special general meeting and the go-ahead from the Supreme Court of British Columbia.
Vancouver-headquartered Usha has a portfolio of strategic properties, which comprise Jackpot Lake, a lithium project in Nevada, Nicobat, a nickel-copper-cobalt project in Ontario along with Lost Basin, a gold-copper project in Arizona.
Contact the author at giles@proactiveinvestors