On October 4, 2024, Cruz Battery Metals Corp. made an announcement regarding an arrangement agreement with its subsidiary, Makenita Resources Inc., to transfer the Hector Silver-Cobalt Project. This project consists of 126 unpatented mineral claims in Ontario, Canada, totaling 2,243 hectares. The company plans to spin-out all securities of Makenita received in exchange for the Hector Property to Cruz’s securityholders on a pro rata basis through a statutory plan of arrangement under the Business Corporations Act (British Columbia).
The record date for this arrangement is set for October 29, 2024, with a mailing date of November 5, 2024, and a meeting date of December 11, 2024. Shareholders are encouraged to vote in person or by proxy in support of the Arrangement. The company’s President, James Nelson, emphasized the significance of being a shareholder of record on October 29, 2024, to receive free shares of Makenita.
Upon completion of the Arrangement, Makenita will become a “reporting issuer” in various provinces in Canada, focusing on the development of the Hector Property. Cruz, on the other hand, will concentrate on its US Properties, including the Solar Lithium Project and Clayton Valley Lithium Project in Nevada, and the Idaho Cobalt Belt Project.
The Arrangement includes a transfer of the Hector Property to Makenita, a share capital reorganization of Cruz, and a securities exchange where Cruz’s shareholders will receive Makenita Spinout Shares. Makenita plans to list its shares on the Canadian Securities Exchange and seek financing to support its exploration activities.
Approval for the Arrangement will be sought from the Supreme Court of British Columbia and Cruz shareholders. The Arrangement is expected to be completed by the end of the fourth quarter of 2024, subject to necessary approvals.
For additional information regarding the Arrangement, interested parties are encouraged to refer to the company’s previous news releases. Cruz Battery Metals Corp. has operations across North America and holds several projects in Nevada, Ontario, and Idaho. Management advises caution in interpreting past results from neighboring properties as indicative of mineralization on Cruz’s properties.
