- MetalsTech (MTC) has proposed a spin-out of its high-grade lithium assets in Quebec, Canada
- The spin-out will create a new company, which will be a wholly owned Australian subsidiary of MetalsTech
- In conjunction with the spin-out, the newly created company will undertake an initial public offering to raise up to $8 million
- If the spin-out is approved shareholders, MTC is planning to appoint lithium industry veteran Chris Evans as its Executive for lithium operations
- On the market this afternoon, MetalsTech is up 5.88 per cent and is trading at 18 cents per share
MetalsTech (MTC) has proposed a spin-out of its high-grade lithium assets in Quebec, Canada.
The spin-out will create a new company, which will be a wholly owned Australian subsidiary of MetalsTech.
The Canadian assets include the Cancet Lithium Project and cover 9584 hectares of prospective high-grade lithium.
Under the agreement, the new company will be incorporated with one share on issue, which will be owned by MTC.
The new company will then enter a share sale agreement, where it will buy all of the shares that MTC holds in the Quebec assets.
In conjunction with the spin-out, the newly created company will undertake an initial public offer (IPO) of its securities. Under the IPO, the new company is aiming to raise up to $8 million.
However, the spinout deal will need to be approved by shareholders.
If approved, MTC is planning to appoint lithium industry veteran Chris Evans as its Executive for lithium operations, initially on a consultancy basis, to help drive the company’s lithium strategy.
Notably, this role is could potentially expand with the new company, under the spinout.
Chris is an experienced project delivery and operational management expert who, as CEO, was responsible for building and bringing the Pilganaoora lithium mine into operation.
On the market this afternoon, MetalsTech is up 5.88 per cent and is trading at 18 cents per share at 1:05 pm AEDT.