GRID:CC - Grid Battery Metals Announces its Plan to Finance and List its Subsidiary on the Canadian Securities Exchange - CSE
(TheNewswire)
Coquitlam, BC - TheNewswire - September 28, 2023 - Grid Battery Metals Inc. (the “ Company ” or “ Grid Battery ”) ( TSXV:CELL ) ( OTC:EVKRF ) ( FRA:NMK2 ) is pleased to announce that theCompany has entered into an Arrangement Agreement with its whollyowned subsidiary 1427652 B.C. Ltd. (" SpinCo "). Inaccordance with the terms of the Arrangement Agreement, Grid willtransfer to SpinCo ownership of its interests in its nickel propertiesin British Columbia, which consists of five claim blocks in threegroups (Nickel West, Nickel Central, Nickel South) in the areasurrounding Mount Sidney Williams, in close proximity to the DecarProject and the Baptiste deposit of FPX Nickel Corp (TSXV:FPX).(collectively, the " Transferred Assets ") in exchange for9,339,040 common shares of SpinCo (the " Consideration Shares "). Grid will spin out the Consideration Shares (the" Spin-OutShares ") to Grid shareholders.
It is proposed that the transaction will be carried outby way of statutory plan of arrangement (the " Spin-Out ")pursuant to the BusinessCorporations Act (British Columbia). Under theterms of the Spin-Out, shareholders of Grid would exchange theirexisting common shares of Grid for the same number of new commonshares of Grid (having the identical terms of the existing Grid commonshares) and Spin-Out Shares of SpinCo. There will be no change inshareholders' holdings in Grid as a result of the Spin-Out. It isanticipated that each Grid shareholder will receive 1/20 of a Spin-OutShare for each Grid common share held as at the record date for thearrangement. Grid will continue to hold its interest in itsNevada-based Lithium Projects (Texas Springs, Volt Canyon and ClaytonValley Lithium Projects).
The Spin-Out Transaction requires the approval of theGrid shareholders and approval of the British Columbia Supreme Courtin order to proceed. Full details on the Spin-Out Transaction will becontained in the Management Information Circular to be prepared forthe Grid shareholder meeting. Grid shareholders are urged to read theManagement Information Circular carefully and in its entirety.
The intention is to seek a listing of the SpinCo commonshares on the Canadian Securities Exchange but no assurance can beprovided that such a listing will be obtained. Any such listing willbe subject to SpinCo fulfilling all of the applicable regulatory andlisting requirements.
Tim Fernback, Grid President & CEO comments “Inorder to continue to create additional shareholder value, we areseparating our Nevada-based lithium properties from our BritishColumbia-based nickel properties, and plan on separately financing andtaking the BC nickel properties public on the CSE. Each Gridshareholder will receive a share dividend and have a proportionateshare of this new entity. We believe this is a win for ourshareholders, giving each shareholder an equity interest in a newpublic company at no additional cost to them.”
About the Canadian SecuritiesExchange
The Canadian Securities Exchange, or CSE, is operatedby CNSX Markets Inc. Recognized as a stock exchange in 2004, the CSEbegan operations in 2003 to provide a modern and efficient alternativefor companies looking to access the Canadian public capitalmarkets.
Grid Battery Metals Inc. is a Canadian basedexploration company whose primary listing is on the TSX VentureExchange. The Company’s maintains a focus on exploration for highvalue battery metals required for the electric vehicle (EV) market. www.gridbatterymetals.com .
About Texas Springs Property
The Company owns a 100% interest in the Texas SpringProperty which consists of mineral lode claims located in Elko County,Nevada. The Property is in the Granite Range southeast of Jackpot,Nevada, about 73 km north-northeast of Wells, Nevada. The target is alithium clay deposit in volcanic tuff and tuffaceous sediments of theHumbolt Formation.
The Texas Spring property adjoins the southern borderof the Nevada North Lithium Project - owned by Surge Battery MetalsInc. (“Surge”) ( TSXV:NILI, OTC: NILIF ) and comprised of 303 mineralclaims. Surge's first round of drilling identified stronglymineralized lithium bearing clays. The average lithium content withinall near surface clay zones intersected in the 2022 drilling program,applying a 1000 ppm cut-off, was 3254 ppm. (Press release March 29,2023 ). More recent results haveshown higher grade lithium up to 8070 ppm on this property afterinitial drilling (Press release September 12,2023 ).
About Clayton Valley LithiumProject
The Company owns a 100% interest in 113 lithium lodeand placer claims covering over 640 hectares in Clayton Valley.Clayton Valley is a down-dropped closed basin formed by the Mioceneage Great Basin extension and is still active due to movement alongthe Walker Lane structural zone. As a result, the basin haspreserved multiple layers of lithium bearing volcanic ash, resultingfrom multiple eruptive events over the past 6 million years includingeruptions from the 700,000-year-old Long Valley Caldera system andrelated events. These ash layers are thought to contribute to thelithium brines extracted by Albemarle and are also likely involved inthe formation of the exposed lithium rich clay deposits on the eastside of Clayton Valley.
Volt Canyon Lithium Property
The Company owns a 100% interest in 80 placer claimscovering approximately 635 hectares of alluvial sediments and clayslocated 122 km northeast of Tonopah, Nevada.
About the British Columbia, NickelProjects
The Mount Sidney Williams Group consists of three claimblocks with a total area of 10,569 hectares in the area surroundingMount Sidney Williams, both adjoining and near the Decar project ofFPX Nickel Corp., located 100 kilometres northwest of Fort St. James,B.C., in the Omineca mining division. Metallic mineralization includesnickel, cobalt, and chromium. At least some of the nickelmineralization occurs as awaruite. The Mitchell Range Group areaclaim consists of one claim block covering 8,659 hectares withdemonstrated metallic mineralization including nickel, cobalt, andchromium. Nickel cobalt mineralization has not been well explored, butthe presence of awaruite has been documented.
On Behalf of the Board of Directors
“Tim Fernback”
Tim Fernback, President & CEO
Contact Information:
Email: info@gridbatterymetals.com
Phone: 604- 4 28-5690
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may contain forward-looking statementswhich include, but are not limited to, comments that involve futureevents and conditions, which are subject to various risks anduncertainties. Except for statements of historical facts, commentsthat address resource potential, upcoming work programs, geologicalinterpretations, receipt and security of mineral property titles,availability of funds, and others are forward-looking. Forward-lookingstatements are not guarantees of future performance and actual resultsmay vary materially from those statements. General business conditionsare factors that could cause actual results to vary materially fromforward-looking statements.
Copyright (c) 2023 TheNewswire - All rights reserved.