Pele Mountain Resources Inc. said Feb. 2 that it formed a wholly owned subsidiary, Sage Power Corp., to advance its energy generation and storage projects in Ontario.

In September 2016, Pele Mountain signed a sustainable energy development agreement with the City of Elliot Lake in Ontario, under which the company was appointed as developer of energy and energy storage projects on city lands through April 2018.

Pele Mountain's interests in the projects will be owned and managed within Sage Power, according to the statement.

In addition, the company noted that it will propose an up to 1-for-10 share consolidation and a name change to Griffin Energy & Metals Ltd. at its annual general and special meeting of shareholders on March 9.

The share consolidation is likely to improve Pele Mountain's access to capital markets, allowing the company to better position itself to advance its projects, including Eco Ridge in Ontario.