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Bearing Lithium plans spinout of gold assets, Nev. lithium project

Bearing Lithium Corp. said March 21 that its board approved a plan to spin off its stake in Commander Resources Ltd., its interests in exploration projects in Canada's Yukon Territory and a lithium project in Nevada into a newly incorporated subsidiary.

The company intends to seek a listing of the spinoff company's common shares on the TSX Venture Exchange.

Bearing will continue to hold its 17.7% stake in the Maricunga lithium joint venture project in Chile.

Under the terms, Bearing shareholders will exchange their existing common shares for shares in the new company and spinoff entity.

In connection with the spinout plans, Bearing will complete a nonbrokered private placement into the spinoff company comprising up to 2 million shares priced at 10 Canadian cents each.

The net proceeds will be used to fund the working capital of the spinoff company, the negotiation of potential joint venture opportunities for its exploration projects and potential future acquisitions.

The proposals will be put to a shareholders' vote at Bearing's 2018 annual general and special meeting, the date of which will be announced later.

Bearing President and CEO Jeremy Poirier said, "We believe the value of these assets is not reflected in the current share price of Bearing Lithium and see this as a way to create additional value for shareholders. The new vehicle will evaluate opportunities outside of the lithium space while Bearing Lithium retains its primary focus on the Maricunga project."

The company owns the HY Claims, BIG, VM and VBA gold properties in Yukon Territory.