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Cruz Battery Metals Enters into Arrangement Agreement for Spin-Out of Hector Silver-Cobalt Project
Vancouver, British Columbia--(Newsfile Corp. - September 6, 2024) - Cruz Battery Metals Corp. (CSE: CRUZ) (OTC Pink: BKTPF) (FSE: A3CWU7) ("Cruz" or the "Compan
About this update from Cruz Battery Metals Corp
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - September 6, 2024) - Cruz Battery Metals Corp. (CSE: CRUZ) (OTC Pink: BKTPF) (FSE: A3CWU7) (\"Cruz\" or the \"Company\") is pleased to announce that, further to its news release dated August 1, 2024, it has entered into an arrangement agreement dated September 5, 2024 (the \"Arrangement Agreement\") with its wholly-owned subsidiary, Makenita Resources Inc. (\"Makenita\"), pursuant to which the Company intends to: (i) transfer all of its rights, title and interest in and to its Hector Silver-Cobalt Project (the \"Hector Property\"), consisting of 126 contiguous unpatented mineral claims totaling 2,243 hectares (5,542-acres), located within the Coleman and Gillies Limit Townships, Larder Lake Mining Division, Timiskaming District, Ontario, Canada, and (ii) spin-out all of the securities of Makenita received in consideration for the Hector Property (the \"Makenita Spinout Share\") to Cruz's securityholders on a pro rata basis, all pursuant to a statutory plan of arrangement (the \"Arrangement\") to be effected under Part 9, Division 5 of the Business Corporations Act (British Columbia) (the \"BCBCA\"). The Arrangement will result in Makenita becoming a separate \"reporting issuer\" in each of Alberta, British Columbia and Ontario, and will allow it to focus on the development of the Hector Property. The Hector Property will be Makenita's material property for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The Company will focus on the development of its Solar Lithium Project and Clayton Valley Lithium Project in Nevada, and its Idaho Cobalt Belt Project and Idaho Star Cobalt Project in Idaho (collectively, the \"US Properties\") and intends to seek to acquire more advanced assets of business opportunities of merit. The Transaction The Arrangement will include a transfer of the Hector Property to Makenita, a share capital reorganization of Cruz, and a securities exchange whereby, among other things, Cruz's shareholders will receive Makenita Spinout Shares. The existing common shares in the capital of Cruz will be renamed and redesignated as Class A common shares (each, a \"Cruz Class A Share\") and Cruz will create a new class of voting common shares (each, a \"New Cruz Share\"). Each Cruz Class A Share will be exchanged for one New Cruz Shar...