DeepRock Minerals Plans Spin-Out of Canadian, Romanian Assets
VANCOUVER, BRITISH COLUMBIA -- October 5th, 2023 -- NewsGenie -- DeepRock Minerals Inc. (CSE:DEEP) is proposing to spin out its Canadian (Ralleau VMS Project in Quebec, Golden Gate Project in New Brunswick) and Romanian (Zapozilor Polymetallic Project) mineral properties into separate companies. This move will allow DeepRock to focus solely on its Esperan\u00e7a and Galilea Lithium Projects in Minas Gerais, Brazil.
The spin-out is expected to be completed via a statutory plan of arrangement under the Business Corporations Act (British Columbia), pending shareholder, regulatory, and Supreme Court of British Columbia approval. The company anticipates the arrangement to occur in early 2024, with details to be disclosed in a management information circular for a special meeting.
CEO Andrew Lee stated that the board believes the spin-out is in the best interests of shareholders. "By segregating the mineral properties, we aim to maximize the value of each project," Lee said, adding that shareholders would benefit from holding shares in three companies, each dedicated to specific projects.