Cruz believes the Hector property is a high priority for follow-up exploration. Credit: Lucian Coman via Shutterstock.

Cruz Battery Metals (Cruz) is proposing to spin-out its Hector silver-cobalt project into a wholly owned subsidiary, Makenita Resources (SpinCo).  

Cruz stated its desire to separate the Hector project from its other mineral properties primarily located in the US, to enable capital markets to value the property separately. The action is being taken with a view to increasing shareholder value for each entity, while accelerating development of the Hector project, it said.  

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The Hector property consists of 126 contiguous unpatented active mining claims, of which Cruz has 100% ownership.  

The project totals 2,243 hectares (5,542 acres). It is located within the Coleman and Gillies Limit Townships, Larder Lake Mining Division, Timiskaming District, Ontario, Canada.  

The principal deposit type of interest within the Hector property is arsenide silver-cobalt epigenetic vein deposits, ranging in width from less than 5cm up to 25cm. 

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The majority of mineral occurrences are in quartz-carbonate-potassium feldspar veins containing variable percentages of disseminated to clotty pyrite, chalcopyrite, pyrrhotite and erythrite (hydrous cobalt arsenate) mineralisation. 

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Cruz believes the Hector property is a high priority for follow-up exploration based on the presence of silver-cobalt arsenide vein intersects in drill core and numerous historic occurrences, various geophysical and geochemical anomalies, and favourable geology.  

Cruz president James Nelson said: “Cruz shareholders will achieve a win-win scenario from the spin-out as they will be shareholders of each company at no cost to them. Management is optimistic about the future of each company.” 

Cruz expects to enter into a definitive agreement with SpinCo to set out the terms of the spin-out within the next 30 days. Completion is planned by the end of the third quarter of 2024. 

The deal has been authorised by the board of directors. Completion is contingent on various approvals, including from shareholders, the Supreme Court of British Colombia, the Canadian Securities Exchange, Nasdaq and other regulatory bodies. 

In addition to Hector, the company is also focused on its lithium projects in Nevada, US, and expects to have a work programme in summer 2024.