Atlas Salt Inc.â€™s [SALT-TSXV; REMRF-OTC] board of directors has approved, in principle, the spinout of the companyâ€™s Fischell Brook salt dome property and related mineral licences comprising 226 km2 in southwest Newfoundland. In connection with the spinout the mineral licences will be transferred to Triple Point Resources Ltd., a subsidiary of the company established for the purpose of the spinout.
The spinout will occur by way of a plan of arrangement under British Columbia laws, whereby shareholders of Atlas Salt will receive an aggregate of 23.75 million common shares of Triple Point, representing approximately $0.30 Triple Point share per Atlas share held, based on the companyâ€™s current outstanding shares.
The final spinout ratio is subject to any changes to the Atlas share structure between the date of this announcement and the final record date for the share distribution. Closing of the arrangement is subject to approval by Atlas shareholders at a special annual general meeting slated for August, 2022, in addition to court approval and stock exchange approval.
The date of record for the share distribution will be announced immediately following all shareholder and regulatory approvals. Triple Point will apply to list its shares on the Canadian Securities Exchange (CSE). Such listing is subject to meeting the listing requirements of the CSE.
On completion of the arrangement and a planned concurrent financing, Atlas anticipates that it will hold approximately 30 per cent of the outstanding Triple Point shares after the distribution to Atlas shareholders.
Patrick Laracy, CEO, commented: â€œThe strategic spinout of the Fischell’s Brook asset and other salt claims through Triple Point, featuring its own management team, is designed to immediately unlock the value of these significant assets for shareholders as we continue to make exciting progress with our flagship Great Atlantic project. The plan, assuming all approvals are granted, is to have the date of record for the share distribution and the public listing of Triple Point to occur as quickly as possible after the August AGM.â€
Atlas Salt owns 100% of the Great Atlantic salt deposit strategically located in western Newfoundland in the middle of the robust eastern North America road salt market. The project features a large homogeneous high-grade resource. Atlas also owns the Fischell’s Brook salt dome and other mineral licenses in western Newfoundland, forming the planned spinout of Triple Point Resources.