The company’s Winston Group of Properties contains three past-producing mines. Credit: RHJPhtotos/Shutterstock.

Foremost Lithium Resource & Technology has announced plans to spin out its gold and silver assets in New Mexico, US, into a new subsidiary named Rio Grande Resources (RGR).

This new subsidiary will hold the company’s Winston Group of Properties, which includes three past-producing mines over a 3,000-acre site in Sierra County, New Mexico.

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The spin-out is set to be executed through a plan of arrangement.

Foremost Lithium will continue to hold an interest in RGR, with the balance of RGR shares to be distributed to its shareholders on a pro rata basis relative to their holdings.

The proposed spin-out is contingent on approvals from shareholders, courts, the CSE, Nasdaq and regulatory bodies, as well as at the discretion of management.

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Following the arrangement, RGR aims to list its shares on the CSE, while Foremost will continue trading on both the CSE and NASDAQ.

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To ensure RGR is well-capitalised to achieve its business goals post-arrangement, it is anticipated that RGR will conduct financing or financings of its shares concurrently with the spin-out.

Foremost Lithium president and CEO Jason Barnard said: “The Winston Group of Properties has yet to realise its full value and this plan of arrangement will offer the time and attention the property deserves.

“These past-producing gold and silver mines are within an extremely favourable geological environment and with gold recently hitting over $2,400/oz, we also find ourselves in a favourable precious metals market.

“The spin out will provide tremendous upside potential for our shareholders as they gain a stake in two different meaningful projects.”