Usha receives final court OK for Formation spinout
2023-01-10 09:46 ET – News Release
Mr. Deepak Varshney reports
USHA RESOURCES OBTAINS FINAL COURT ORDER APPROVING THE SPIN-OUT OF FORMATION METALS INC
Usha Resources Ltd. has obtained the final order from the Supreme Court of British Columbia approving the previously announced proposed spinout of the company’s wholly owned subsidiary, Formation Metals Inc. (FMI), through a plan of arrangement between Usha and FMI. The Company will proceed with completing closing conditions of the Arrangement, including seeking final approval of the Arrangement by the TSX Venture Exchange (the “TSXV”). The Arrangement cannot be completed until these conditions have been met.
Upon completion of the Arrangement and the share exchange pursuant to the Arrangement, each USHA Shareholder will receive one (1) common share of FMI with respect to every five (5) common shares of USHA held on the Share Distribution Record Date (the “Share Distribution Record Date”). For example, upon completion of the Arrangement, for each 10,000 common shares of USHA owned on the Share Distribution Record Date, the USHA Shareholder will own 2,000 common shares of FMI. USHA Shareholders will continue to own the same number of USHA common shares as they did on the Share Distribution Record Date.
FMI will then hold the Company’s interest in the Nicobat Nickel Project and will focus on the advancement of this project, while USHA will retain and focus on the advancement of its exploration projects in the USA, including the Jackpot Lake Lithium Brine Project where the Company has begun its drilling program (https://tinyurl.com/26ryndz3).
USHA Shareholders must hold their USHA common shares on the Share Distribution Record Date in order to receive their pro rata portion of the FMI common shares being distributed pursuant to the Arrangement. USHA will disseminate a press release to notify shareholders in advance of the Share Distribution Record Date once the conditions to closing of the Arrangement have been satisfied.
Jackpot Lake Lithium Brine Project Exploration Update
The Company is also pleased to provide an update on drilling activities at its Jackpot Lake Lithium Brine Property (“Project”). Drilling is scheduled to resume shortly, with exploration at borehole JP-1, which was paused at the 440-metre level in December, set to continue to a target depth of approximately 600 metres before moving on to the next drilling location. The Company anticipates providing additional updates throughout January and February 2023 as its exploration program progresses.
A video update from the Company is available at this link.
Qualified person
The technical content of this news release has been reviewed and approved by Seth Cude, PG, RM, MSc, CASS, a qualified person as defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects.
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the development of quality battery and precious metal properties that are drill-ready with high-upside and expansion potential. Based in Vancouver, BC, USHA’s portfolio of strategic properties provides target-rich diversification and consist of Jackpot Lake, a lithium project in Nevada; Nicobat, a nickel-copper-cobalt project in Ontario; and Lost Basin, a gold-copper project in Arizona. USHA trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under the symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.
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