(TheNewswire)
Coquitlam, BC - TheNewswire - October 24, 2023 - Fuse Battery Metals Inc. (the “ Company ” or “ Fuse Battery ”) ( TSXV:FUSE ) ( OTC:FUSEF ) ( FRA:43W3) is pleased to announce that theCompany has entered into an Arrangement Agreement with its whollyowned subsidiary Ignition Battery Metals Inc. (" SpinCo "). Inaccordance with the terms of the Arrangement Agreement, Fuse willtransfer to SpinCo ownership of its interests in its Teledyne andGlencore Bucke cobalt properties in Ontario, (collectively, the" TransferredAssets ") in exchange for approximately9,397,440 common shares of SpinCo (the " Consideration Shares "). Fuse will spin out the Consideration Shares (the" Spin-OutShares ") to Fuse shareholders. The Teledyne Cobalt Property located in Bucke and Lorrain Townships, consistsof 5 patented mining claims totaling 79.1 ha, and 46 unpatented miningclaim cells totaling approximately 700 ha. The Glencore Bucke Property consists of two patented mining claims totaling approximately16.2 ha in area located on the west boundary of Fuse’s TeledyneCobalt Project
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 Fuse would exchange theirexisting common shares of Fuse for the same number of new commonshares of Fuse (having the identical terms of the existing Fuse commonshares) and Spin-Out Shares of SpinCo. There will be no change inshareholders' holdings in Fuse as a result of the Spin-Out. It isanticipated that each Fuse shareholder will receive 1/20 of a Spin-OutShare for each Fuse common share held as at the record date for thearrangement. Fuse will continue to hold its interest in its NorthAmerican Lithium Properties.
The Spin-Out Transaction requires the approval of theFuse 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 Fuse shareholder meeting. Fuse 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 TSX Venture Exchange, but no assurance can be providedthat such a listing will be obtained. Any such listing will be subjectto SpinCo fulfilling all of the applicable regulatory and listingrequirements.
Tim Fernback, Fuse President & CEO comments “Inorder to continue to create additional shareholder value, we areseparating our Ontario based cobalt properties from our Nevada-basedlithium properties, and plan on separately financing and taking theOntario cobalt properties public on the TSXV. Each Fuse shareholderwill receive a share dividend and have a proportionate share of thisnew entity. We believe this is a big win for our shareholders,giving each shareholder an equity interest in a new public company atno additional cost to them.”
About Fuse Battery Metals Inc. https://fusebatterymetals.com
Fuse Battery Metals Inc. is a Canadian basedexploration company that trades under the symbol FUSE on the TSXVenture Exchange. The Company's focus is on exploration for high valuemetals required for the manufacturing of batteries.
Nevada Lithium Properties
Fuse owns 100% of the Lithium Springs Property which is located at the southern end of Black Rock Desert,Nevada, about 132 air-line km north-northeast of Reno, Nevada inSections 1, 2, 11, and 12 Township 32 North, Range 23. The center ofthe property is about 40.676° North Latitude, 119.331° WestLongitude, (40° 40’ 33” N, 119° 19’ 52”): UTM X 302,900 UTMY4,505,400 NAD 27; Zone 11 N. Black Rock Desert basin is about 110km long and up to 25 km wide at the widest point. The central playameasures about 50 km northeast - southwest and 10 km southeast -northwest. The western arm of the Black RockDesert covers an area of about 2,000 square kilometers and contains 5of the 30 currently listed Known Geothermal Resource Areas inNevada .
Fuse also owns 100% of the Monitor Valley North LithiumProperty which includes 97placer claims (MVN1 – MVN97) covering approximately 770 hectares ofalluvial sediments and clays located 134 km northeast of Tonopah,Nevada. The property is located in Monitor Valley, Nevada, and thecenter of the property is about 39.21° North Latitude, 116.65° WestLongitude. The property is 55 km due west of the Little SmokeyValley, Nevada where exploration for lithium is ongoing.
Ontario Cobalt Properties
Fuse owns a 100% interest its Glencore Bucke Property,situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario,subject to a back-in provision, production royalty and off-takeagreement. The Glencore Bucke Property consists of 16.2 hectares andsits along the west boundary of Fuse’s Teledyne Cobalt Project. The Company also owns a 100% interest, subject to a royalty, in theTeledyne Project located near Cobalt, Ontario. The Teledyne Propertyadjoins the south and west boundaries of claims that hosted the AgnicoMine.
Glencore Bucke/TeledyneProperty
Situated in Bucke Township, 6 km east-northeast ofCobalt, Ontario the Glencore Bucke Property adjoins, on its northeastcorner, the former cobalt producing Agaunico Mine. From 1905 throughto 1961, the Agaunico Mine produced a total of 4,350,000 lbs. ofcobalt (“Co”), and 980,000 oz of silver (“Ag”)(Cunningham-Dunlop, 1979). Theamount of cobalt produced from the Agaunico Mine is greater than thatof any other mine in the Cobalt Mining Camp. Production ceased in 1961 due to depressed Co prices and over-supply(Thomson, 1964). The Glencore property is 100% owned by Fuse Cobaltsubject to a back-in provision, production royalty and off-takeagreement.
The associated Teledyne Property, located in Bucke andLorrain Townships, consists of 5 patented mining claims totaling 79.1ha, and 46 unpatented mining claim cells totaling approximately 700ha. The Property is easily accessible by highway 567 and awell-maintained secondary road .
Over CAD$25 million has been spent thus far, (2020dollars inflation-adjusted) on the Teledyne Property resulting invaluable infrastructure including a development ramp and a moderndecline going down 500 ft parallel to the main cobalt mineralizedvein. The Teledyne Property is subject to a production royalty infavor of New Found Gold and an off-take agreement in favor of GlencoreCanada Corp., while the Glencore Bucke Property is subject to aback-in provision, production royalty, and an off-take agreement infavor of Glencore Canada Corp. Glencore PLC is the world’s largestproducer of cobalt. Asignificant portion of the cobalt that was produced at the AgaunicoMine was located along structures (Vein #15) that extended southwardtowards the northern boundary of the Teledyne Cobalt Property, currently 100% owned by FUSE. Mineralization wasgenerally located within 125 ft (38.1 m) above the Huronian/Archeanunconformity. Stoping widths of up to 50 ft (15.2 m) were not unusualat the Agaunico Mine (Cunningham-Dunlop, 1979).
On Behalf of the Board ofDirectors
“Tim Fernback”
Tim Fernback, President &CEO
Contact Information:
Email: info@fusebatterymetals.com
Phone: 236-521-0207
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.
Cautionary Note Regarding ForwardLooking Statements: This release contains forward-looking statementsthat involve risks and uncertainties. These statements may differmaterially from actual future events or results and are based oncurrent expectations or beliefs. For this purpose, statements ofhistorical fact may be deemed to be forward-looking statements. Inaddition, forward-looking statements include statements in which theCompany uses words such as “continue”, “efforts”,“expect”, “believe”, “anticipate”, “confident”,“intend”, “strategy”, “plan”, “will”, “estimate”,“project”, “goal”, “target”, “prospects”,“optimistic” or similar expressions. These statements by theirnature involve risks and uncertainties, and actual results may differmaterially depending on a variety of important factors, including,among others, the Company’s ability and continuation of efforts totimely and completely make available adequate current publicinformation, additional or different regulatory and legal requirementsand restrictions that may be imposed, and other factors as may bediscussed in the documents filed by the Company on SEDAR(www.sedar.com), including the most recent reports that identifyimportant risk factors that could cause actual results to differ fromthose contained in the forward-looking statements. The Company doesnot undertake any obligation to review or confirm analysts’expectations or estimates or to release publicly any revisions to anyforward-looking statements to reflect events or circumstances afterthe date hereof or to reflect the occurrence of unanticipated events.Investors should not place undue reliance on forward-lookingstatements.
Copyright (c) 2023 TheNewswire - All rights reserved.