Recharge Resources is planning to transfer its 100%-owned Pinchi Lake nickel project in Canada to a new subsidiary, which will be named NextCharge Battery Metals Corp.
As part of the plan, Recharge will offer funding to NextCharge and spin out NextCharge shares, with Recharge’s shareholders getting one share for every three shares held.
Recharge set 5 December 2022 as the effective date of the spin-out.
Commenting on the proposal, Recharge CEO David Greenway said: “With a fully-funded drill programme at Brussels Creek currently awaiting permits, as well as an off-take LOI in place for lithium supply, a technology licence for a multi-phase build-out of a 20,000tpa Ekosolve lithium extraction operation and a fully funded 2022 drill programme underway for a production diameter well at the Pocitos 1 Lithium Brine Project, we see this as the perfect opportunity to unlock value for investors by spinning out the fully qualified Pinchi Lake Nickel Project, into a separate, discovery-oriented public company.”
The transaction awaits the fulfilment of several conditions, including financial analysis, determination of final transaction details, and regulatory approval, among others.
Recharge said that the spin-off will be based on market conditions or investor interest, and may or may not be concluded on the proposed terms or at all.
Located 15km to 30km north-west of Fort St. James and 120km north-west of Prince George in central British Columbia, the Pinchi Lake nickel project was explored earlier by Nanton Nickel.
Together with the Murray Ridge project, the Pinchi Lake nickel project comprises three separate claim blocks covering a total area of 3,917.326ha.