- Clean TeQ (CLQ) has urged its shareholders to vote in favour of demerging its water business to enable a greater focus on battery metals
- It follows a structural review that was launched in September last year, which found that the company’s mining and water segments would operate better as standalone entities
- The Clean TeQ name will likely stay with the water business while the existing company, which will focus primarily on the Sunrise Project, will undertake a name change to Sunrise Energy Metals
- Shareholders will vote on a number of resolutions for the proposed demerger at a meeting scheduled for March 24 this year
- Clean TeQ is up 5.26 per cent to $0.30 per share
Clean TeQ (CLQ) has urged its shareholders to vote in favour of demerging its water business to enable a greater focus on battery metals.
The water business is focused on the design, procurement, construction and operation of tailored water purification and recycling solutions for the mining and agri-food sectors, and carries out research initiatives into new water treatment technologies.
The decision to spin-out this segment follows a structural review that was launched in September last year, which found that the water business would operate better as a standalone entity separate from Clean TeQ’s Sunrise Project and other exploration assets in New South Wales.
Clean TeQ said its proprietary technologies at projects in Oman, Australia and the Democratic Republic of Congo have shown considerable effectiveness over the last 18 months, positioning the water business well to independently secure and grow a healthy pipeline of new work.
“Establishing stand-alone, separately-listed entities will allow shareholders to more readily manage their own desired exposure to each of the businesses, as well as simplifying the investment proposition to new investors,” Clean TeQ said in a statement.
“In the case of Sunrise, it also provides an opportunity to pursue investment and funding structures using a corporate vehicle comprising an asset suite focused exclusively on energy materials.”
It’s expected that the water business will retain the Clean TeQ name, while the existing company will undertake a name change to Sunrise Energy Metals Limited and focus solely on the Sunrise Project and other battery metals exploration assets.
A shareholder meeting has been scheduled for March 24 this year, during which a number of resolutions will be voted on to facilitate the proposed demerger process.
Another meeting will then be held to vote on the demerger itself which, should it be approved, is anticipated to take place in the second quarter of calendar 2021.
Clean TeQ is up 5.26 per cent to $0.30 per share at 3:37pm AEDT.