Benton, Sokoman to spin-out Vinland Lithium shares
Benton Resources Inc. [BEX-TSXV] said it is planning to seek shareholder approval to spin-out to shareholders approximately half of Benton’s 4.0 million shares of Vinland Lithium Inc.
Vinland holds the Killick Lithium project in Newfoundland, which holds excellent discovery potential in a newly-discovered lithium belt, Benton said in a press release. Vinland is currently owned 40% by Benton, 40% by Sokoman Minerals Corp. [SIC-TSXV, SICNF-OTCQB] and 20% by a wholly-owned subsidiary of Piedmont Lithium Inc. [PLL-NASDAQ, PLL-ASX].
Benton said Sokoman will concurrently seek approval from its shareholders for a similar 2.0 million share spin-out. Subject to completion, the TSX Venture Exchange has conditionally agreed to list approximately 10 million issued shares of Vinland, of which approximately 40% will be held by Benton and Sokoman shareholders.
Piedmont Lithium is one of North America’s leading lithium companies. In 2023, it completed a financing in Vinland of $2.0 million at $1.00 per share to hold 19.9%.
Piedmont will have an option to earn up to a 62.5% direct interest in Killick Lithium Inc., by spending $12 million in exploration and development during the period of the option. Once it has completed all of the earn-in options, Piedmont/Piedmond Lithium Inc. will have paid Benton and Sokoman $10 million in Piedmont Lithium shares in addition to having funded all the Vinland exploration and development costs.
Benton and Sokoman will collectively retain a 2.0% net smelter royalty stake on the Killick project.
Benton is currently focused on advancing the Great Burnt project in central Newfoundland, which has an indicated mineral resource estimate of 667,000 tonnes of grade 3.21% copper. On top of that is an inferred resource of 482,000 tonnes of grade 2.35% copper. The company has said the project has an excellent geological setting covering 25 kilometres of strike and boasts six known copper-gold-silver zones over 15 kilometres that are all open for expansion.
Benton shareholders will be asked to approve the spin-out plan at the company’s annual meeting, which is currently set to be held on January 8, 2025, in Vancouver, although the actual date is likely to change as a result of the Canadian postal strike.
Benton said the spin-outs will be substantially pro rata to Benton and Sokoman shareholders. However, it said the exact ratio of Vinland shares per Benton shares will be determined prior to completion in January 2023. It said the exchange ratio is dependent on the number of Benton shares issued at the time of completion. The ratio is expected to be approximately 50 Vanland shares per 5,000 Benton shares.
On Monday, Benton was unchanged at $0.085. The shares trade in a 52-week range of 23 cents and $0.08. Sokoman was unchanged at $0.035 and trades in a 52-week range of $0.085 and $0.03.