{kanada_flagge}Following a special shareholder resolution at the annual general meeting, it is now final that Usha Resources Limited (TSX-V: USHA; OTCQB: USHAF; FRA: JO0) will spin-out its nickel assets to its wholly-owned subsidiary Formation Metals Inc. The spin-out was approved on December 16 with 99.76% of the votes cast. Holders of a total of 20,343,901 common shares voted at the annual meeting, representing 57.76% of the Company’s outstanding common shares.
Conclusion: The first quarter of 2023 promises to be eventful for Usha shareholders. In all likelihood, the record date for the spin-out will fall in the first quarter, bringing a 20% stock dividend. In addition, Usha will complete its drilling (perhaps even by the end of this year) and then measure the flow rate and concentration of brine at the various depths. Already, the geological analogies between the Silver Peak (Albemarle) and Jackpot Lake deposits are striking. The two projects are only a four-hour drive apart and are closely related in their formation histories. Usha has a very good chance of proving a significant lithium resource in the heart of Nevada in the next six months. If successful, there should be no shortage of money and interested parties to develop a mine.
Following a special shareholder resolution at the annual general meeting, it is now final that Usha Resources Limited (TSX-V: USHA; OTCQB: USHAF; FRA: JO0) will spin-out its nickel assets to its wholly-owned subsidiary Formation Metals Inc. The spin-out was approved on December 16 with 99.76% of the votes cast. Holders of a total of 20,343,901 common shares voted at the annual meeting, representing 57.76% of the Company’s outstanding common shares.
On the record date, each USHA shareholder will receive one common share of Formation Metals for every five common shares of USHA. So, for example, anyone holding 10,000 common shares of USHA will receive an additional 2,000 common shares of Formation Metals in the form of a stock dividend on the record date. The record date is yet to be announced.
Formation Metals will then own the Nicobat nickel project and will focus its efforts on advancing that project. Usha will focus on its exploration projects in the U.S., in particular the Jackpot Lake lithium brine project, where the first deep drilling is currently underway.
Drilling on the Jackpot Lake project is currently at the 440 m level, leaving approximately 200 meters to bedrock. The exploration team has again encountered several zones of evaporite crystals in the form of interbeds, veins and inclusions in sediments of silty to sandy clay, clay sand and clay. In particular, the salt crystal halite was identified. Such salt crystals do not form in fresh water, which supports the thesis that the aquifers on Jackpot Lake are enriched in brine. However, until measurements are available, the company cannot yet speak of lithium-bearing brines.
Conclusion: The first quarter of 2023 promises to be eventful for Usha shareholders. In all likelihood, the record date for the spin-out will fall in the first quarter, bringing a 20% stock dividend. In addition, Usha will complete its drilling (perhaps even by the end of this year) and then measure the flow rate and concentration of brine at the various depths. Already, the geological analogies between the Silver Peak (Albemarle) and Jackpot Lake deposits are striking. The two projects are only a four-hour drive apart and are closely related in their formation histories. Usha has a very good chance of proving a significant lithium resource in the heart of Nevada in the next six months. If successful, there should be no shortage of money and interested parties to develop a mine.
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