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Usha Resources Announces Creation of Formation Metals Spinout through Signing of Arrangement Agreement
VANCOUVER, BC / ACCESSWIRE / May 11, 2022 / Usha Resources Ltd. ("USHA" or the "Company...
About this update from Usha Resources Ltd
[{"type":"text","content":"Usha Resources Announces Creation of Formation Metals Spinout through Signing of Arrangement AgreementVANCOUVER, BC / ACCESSWIRE / May 11, 2022 / Usha Resources Ltd. (\"USHA\" or the \"Company\") (TSXV:USHA)(OTCQB:USHAF)(FSE:JO0), a North American mineral acquisition and exploration company focused on the development of drill-ready battery and precious metal projects, is pleased to announce unanimous Board of Director approval and support for its previously announced spin-out transaction (the \"Spinout\") and that the Company has now entered into an arrangement agreement (the \"Arrangement\") with its wholly-owned subsidiary, Formation Metals Corporation (\"Formation Metals\" or \"FMC\"), to transfer the Nicobat Nickel-Copper-Cobalt property to FMC.Under the terms of the Arrangement dated May 10, 2022, USHA shareholders will be issued one (1) share of FMC with respect to every five (5) shares of USHA owned on the share distribution record date (the \"Share Distribution Record Date\"), which will be predetermined by USHA's Board of Directors and announced by a news release -in advance. Holders of USHA options and warrants, who exercise their options and/or warrants before the Share Distribution Record Date, will also be entitled to receive one (1) share of FMC with respect to every five (5) shares of USHA.Upon completion of the Arrangement, USHA shareholders will ultimately own shares in two public companies:USHA, which will be focused on its US-based assets, including the Jackpot Lake lithium brine project.Formation Metals, which will be focused on nickel at the Nicobat project.Deepak Varshney, CEO of Usha Resources stated: \"Formation Metals was conceived with the idea of expanding our investor base while creating additional shareholder value. This move will provide our investors with an ownership stake in two separate companies, while allowing each entity to pursue separate growth paths and unlock additional opportunities specific to their market. Both USHA and FMC will be better positioned to execute on their respective strategic business plans and have the required flexibility to allocate resources and deploy capital as each see fit. At the end of the day, I want to capitalize on the exciting opportunities we have in motion while building sustainable value for our long-term, big picture shareholders in both USHA and Formatio...