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Manganese X Announces Arrangement Agreement to Complete Spin-Out of Lac Aux Bouleaux Graphite Property, and Completion of Graphano Private Placement
Montréal, Québec--(Newsfile Corp. - December 23, 2020) - Manganese X Energy Corp. ...
About this update from Manganese X Energy Corp.
[{"type":"text","content":"Manganese X Announces Arrangement Agreement to Complete Spin-Out of Lac Aux Bouleaux Graphite Property, and Completion of Graphano Private PlacementMontréal, Québec--(Newsfile Corp. - December 23, 2020) - Manganese X Energy Corp. (TSXV: MN) (FSE: 9SC2) (OTC Pink: MNXXF) (\"Manganese X\" or the \"Company\") is pleased to announce that it has entered into an arrangement agreement (the \"Arrangement Agreement\") with its wholly-owned subsidiary, Graphano Energy Ltd. (\"Graphano\"), to spin out its Lac Aux Bouleaux graphite property, located in the province of Quebec (the \"LAB Graphite Property\"). Further, the Company is pleased to announce that, in connection with the Arrangement (as defined below), Graphano completed a private placement of subscription receipts (\"Subscription Receipts\") on December 22, 2020, for aggregate gross proceeds of $2,721,707, at a price of $0.05 per Subscription Receipt (the \"Graphano Private Placement\"). Details of the Graphano Private Placement are described below.The Arrangement is expected to result in the creation of Graphano as an independent public company, which will initially be focused on the exploration of the LAB Graphite Property for graphite moving forward. Graphano is expected to have the ability to source its own funding independent of the Company. Plan of ArrangementThe transactions contemplated by the Arrangement Agreement (collectively, the \"Arrangement\") will be completed as a statutory plan of arrangement (the \"Plan of Arrangement\") under the Business Corporations Act (British Columbia). Under the Plan of Arrangement, shareholders of the Company (the \"Shareholders\") are expected to receive, in exchange for each common share of the Company (each, a \"Common Share\") (i) one new common share of the Company (having identical terms as the Common Shares) (\"New Common Shares\"), and (ii) 0.125 of a common share in the capital of Graphano (each, a \"Graphano Share\"). Following completion of the Arrangement, Graphano will cease to be a wholly-owned subsidiary of the Company. The Company will continue to focus on the exploration and development of its Battery Hill Manganese and Peter Lake Copper-Nickel-Cobalt-Gold-Silver projects in New Brunswick and Quebec, respectively, following completion of the Arrangement, while Graphano is expected to focus on the exploration and...