Mr. Andrew Lee
reports
DEEPROCK MINERALS PROPOSES SPINOUT TO MAXIMIZE VALUE AND TO FOCUS ON LITHIUM EXPLORATION IN BRAZIL
Deeprock Minerals Inc. is proposing a plan to "spin out" its Canadian mineral properties -- the Ralleau VMS (volcanogenic massive sulphide) project in Quebec and the Golden Gate project in New Brunswick -- into one company and its Zapozilor polymetallic project in Romania to another company. The spinout will allow Deeprock to continue as a single entity solely focused on the Esperanca and Galilea lithium projects in Minas Gerais, Brazil.
It is anticipated that the spinout will be completed by way of a statutory plan of arrangement under the
Business Corporations Act
(British Columbia) and will be subject to shareholder and regulatory approval as well as approval of the Supreme Court of British Columbia. The company expects to proceed with the arrangement some time in early 2024, and full details of the spinout will be disclosed in the management information circular for the special meeting to be held.
"Deeprock's board believes the proposed spinout will be in the best interests of shareholders," said Andrew Lee, chief executive officer of Deeprock. "By segregating the mineral properties, we aim to maximize the value of each project. We believe it's a win-win situation for shareholders to hold shares in three companies with different projects that will now receive the attention that each deserves."
We seek Safe Harbor.
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