The update stated that Manganese X and Graphano are waiting for approval from the TSX Venture Exchange to list Graphano on the TSXV after the spin-out under the ticker GEL. Once they receive approval from the TSXV, Manganese X will set up a record date to distribute Graphano shares to MN shareholders.
Manganese X shareholders will receive one GEL share for every eight MN shares they own.
“We are diligently working on value creation on multiple fronts. The Graphano spin-out is quickly coming up. Energy metals continue to remain a hot sector going forward as the strong global push to accelerate a cleaner battery driven electrification agenda continues unabated,” commented Manganese X CEO Martin Kepman.
Today’s update comes just over a month after shareholders approved the decision to spin-out the Lac Aux Bouleaux project. The decision amongst shareholders was overwhelmingly in favour, with 13,548,548 common shares voting for the spin-out, which represents 99.15% of the total number of common shares.
The decision to spin out the LAB project was made in December, and, according to that announcement, Graphano will act as an independent public company, raising its own capital independent of Manganese X. The decision to spin out the LAB project was “to enhance focus on maximizing shareholder value”, with MN’s main focus currently on the Battery Hill manganese project in New Brunswick.
The LAB graphite property, located near the town of Mont-Laurier in southern Québec, is comprised of 14 mineral claims in one contiguous block totalling 738.12 hectares of land. The Lac Aux Bouleaux project was acquired by Manganese X in June 2019 for a package with a total value of $50,000, although the vendor retained $2 per ton royalty.
The LAB project is just south of a “world class” graphite deposit which was producing 25,000 tonnes of graphite annually. Graphite is an essential part of the production of solar panels.
Following the update, Manganese X’s share price is up a cent and a half, and is currently trading at $0.34.
Full disclosure: Manganese X Energy is an Equity Guru marketing client.