Silver Elephant Mining has spined out its nickel and vanadium assets, and created a separate battery metals royalty subsidiary, as part of a restructuring plan.
The assets spun out, each into its own entity, include Gibellini vanadium project in Nevada, US, the Minago nickel project, Canada, and certain battery metals royalties.
As a result of the spin-out, each of the company’s shareholders would receive one share of Minago SpinCo, one share of Gibellini SpinCo and two Battery Metals Royalties SpinCo shares.
Silver Elephant’s remaining non-escrowed Minago SpinCo shares (approximately 45%), and Gibellini SpinCo (approximately 45%) will be transferred to Battery Metals Royalties as part of the arrangement.
Each SpinCo is planned to be listed on a Canadian securities exchange.
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In a press statement, Silver Elephant said: “The share distribution offers Shareholder direct participation in the growth and upside in each of the four companies’ businesses (silver mining, vanadium mining, nickel mining, and royalty investments).”
Silver Elephant said that it plans to continue to hold the Pulacayo silver and El Triunfo gold / silver projects in Bolivia.
As a long-term investment, the firm will also continue to own about 30% of the issued and outstanding battery metals royalty shares.
Last year, Silver Elephant Mining, through its subsidiary Nevada Vanadium, has acquired the Bisoni vanadium project from CellCube Energy Storage Systems.
Situated immediately south-west to Nevada Vanadium’s Gibellini Project, the Bisoni Project comprises 201 lode mining claims, along a 13.8km strike.
Silver Elephant Mining said that the large, combined land package potentially holds significant vanadium resources in the US.