Edison Lithium’s (TSXV:EDDY) (OTCQB:EDDYF) (FSE:VV00) Directors approve proposed spinout of its Kittson Cobalt Property assets in NE Ontario into a newly incorporated subsidiary, and $3 million unit placement, while continuing to focus on its lithium projects in Argentina.
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Edison Lithium’s (TSXV:EDDY) (OTCQB:EDDYF) (FSE:VV00) Directors approve a proposed spinout of its cobalt assets in northeastern Ontario, referred to as the Kittson Cobalt Property, into a newly incorporated subsidiary, “SpinCo”, while continuing to focus on its lithium projects in Argentina.
The Kittson Cobalt Property is located 30 kilometres west of the town of Cobalt in northeast Ontario, Canada,
The area a rich history with more than 550 million ounces of silver, 24.6 million pounds of cobalt, 3.6 million pounds of nickel, and 2.6 million pounds of copper having been produced from about 140 properties between 1904 and 1989.
The property hosts the Thomas Edison, Shakt-Davis and Cobalt-Kittson mines, all historical cobalt-silver producing mines, as well as numerous historic workings, the deepest extending down to 628 feet, and over 2,500 feet of lateral workings.
Veins hosting the mineralization at the Kittson-Cobalt Project differ from the typical Cobalt Silver Camp veins in that they are lower in silver but richer in cobalt and are associated with significant gold.
Locally significant nickel, copper and to a lesser extend lead, zinc and bismuth also occur within the quartz-carbonate veins.
Historic reports from the Shakt-Davis mine indicate values of 1.5% cobalt over 1.37 metres and select grab samples returning up to 4% cobalt and 93.3 grams per tonne gold.
For more information on the properties, please refer to the Technical Report filed on Sedar.
Nathan Rotstein, CEO, stated: "It is our intention to build shareholder value by providing investors with an ownership stake in two separate specialized companies. Both companies will be in the hot battery metals sector. Each company will operate as a separate entity and will enjoy distinction in the exponential growth of the EV market."
The company will continue to hold its interest in its lithium projects in Argentina.
In 2021, Edison acquired Resource Ventures S.A., an Argentinian corporation that owns or controls the rights to over 148,000 hectares, or 365,708 acres, of prospective lithium brine claims in the province of Catamarca, Argentina.
The claims are principally located in the two geological basins known as the Antofalla Salar and the Pipanaco Salar in South America's famed Lithium Triangle.
Nathan Rotstein, CEO, further commented: “Our initial emphasis will focus on developing our properties at Antofalla, as it is a globally renowned lithium basin. Our claims in the Pipanaco salar, while only early stage exploration, may prove to be strategic for a potential regional lithium processing facility located less than 50 km from Catamarca city. We believe this strongly positions the company as a lithium player in South America’s famed lithium triangle, during an energy metals commodities bull cycle. Our growth will be accelerated by acquisitions within the lithium space.”
In connection with the Spin-Out, the company intends to undertake a private placement to raise gross proceeds of $3 million from the placement of 60 million subscription receipts priced at $0.05 per subscription receipt.
Each subscription receipt will convert into one share and one warrant of the new company, exercisable at $0.08 for 24 months.
The funds will remain in escrow until all conditions of the spin-out have been satisfied.
The net proceeds will be used to fund exploration of the Kittson Cobalt Property and for general working capital, including, potential future acquisitions.
In the event that the escrow release conditions are not satisfied within the given timeframe, the funds will be returned.
The shares are trading at $0.125.
For more information, please visit the company’s website at www.EdisonLithium.com, contact Nathan Rotstein, CEO, at 416-526-3217, or by email at info@EdisonLithium.com.
I’m Kamantha Naidoo for Investmentpitch Media
