Canada-based mineral exploration company Benton Resources has announced that its shareholders have approved the spin-out of approximately two million of Benton’s four million common shares of Vinland Lithium to shareholders.
Vinland Lithium, which owns the Killick lithium project in Newfoundland, Canada, is a joint venture owned by Benton Resources (40%), Sokoman Minerals (40%) and Piedmont Lithium’s subsidiary Piedmont Lithium Newfoundland Holdings (20%).
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Shareholders of Sokoman have concurrently approved a similar spin-out of two million of Sokoman’s four million shares of Vinland Lithium.
This move was approved under a special resolution to reorganise Benton and Sokoman’s share capital.
The TSX Venture Exchange has approved the listing of Vinland’s approximately ten million issued shares, of which around 40% will be distributed to Benton and Sokoman shareholders.
The spin-outs are substantially pro rata, with the exchange ratio set at approximately 50 Vinland shares for every 5,000 Benton shares and 50 Vinland shares for every 8,000 Sokoman shares.
However, accounts holding fewer than 5,000 Benton shares, valued at approximately C$375 ($271.39), and accounts holding less than 8,000 Sokoman shares will not receive Vinland shares due to the prohibitive costs of administration and compliance for very small odd-lot shareholders.
The distribution of Vinland shares to Benton and Sokoman shareholders is expected to take place on or around 30 April 2025.
The Killick lithium project is recognised for its excellent discovery potential within a newly discovered lithium belt.
Piedmont Lithium completed a C$2m financing in Vinland at C$1 per share in 2023 to secure a 19.9% holding.
Piedmont has the option to earn up to a 62.5% direct interest in Killick Lithium by investing C$12m in exploration and development.
Upon completion of all earn-in options, Piedmont/Piedmont Lithium will have paid Benton and Sokoman a total of C$10m in Piedmont Lithium shares, in addition to funding all exploration and development costs for Vinland.
Benton and Sokoman will collectively retain a 2% net smelter return on the Killick project.
