Cruz Battery Metals (CSE: CRUZ; OTC Pink: BKTPF) plans to reorganize its mineral exploration assets by spinning out the Hector silver-cobalt project into a new, wholly-owned subsidiary called Makenita Resources (SpinCo).
“Cruz shareholders will achieve a win-win scenario as they will be shareholders of each company at no cost to them,” said Cruz’s president James Nelson. “Cruz is focused on its lithium projects in Nevada and expects to have a work program this summer.”
The Hector property includes 126 contiguous unpatented mining claims covering 2,243 ha in Ontario’s Coleman and Gillies townships, within the Larder Lake mining division and the Timiskaming district. Cruz owns these claims outright and they are in good standing.
Based on the presence of silver-cobalt arsenide vein intersects, historic occurrences, geophysical anomalies, and favorable geology, Cruz management believes Hector is a high-priority target for further exploration.
The main deposit type at Hector is arsenide silver-cobalt vein deposits with veins ranging from under 5 cm to 25 cm in width. Historically, mineral occurrences have been found in shallow pits, trenches or water-filled shafts.
From 1904 to 1989, the Cobalt mining camp produced significant amounts of silver, cobalt, nickel, and copper. Mining activity fluctuated with changes in silver prices and cobalt demand, with periods of closure and reopening.
The reorganization involves Cruz transferring all rights to the Hector property to SpinCo in exchange for SpinCo shares. The spin-out aims to separate the Hector property from Cruz’s other US-based properties, allowing the market to value Hector independently and potentially increasing shareholder value. Cruz also believes this separation will speed up the development of the Hector property.
For more information, visit www.CruzBatteryMetals.com.
