Iberian Minerals Ltd. said Dec. 14 that its board approved a plan of arrangement for the proposed spinout of its X-Leach reagent technology to EnviroLeach Technologies Inc., a new company formed to continue the research and development of X-Leach.

The spinout will include the transfer of all X-Leach-related assets, including intellectual property rights to the eco-friendly X-Leach non-cyanide based leach formula, to EnviroLeach for C$3 million.

Iberian shareholders will receive, via a return of capital dividend, approximately 1 share of EnviroLeach for every 10 Iberian shares held. The transaction will see Iberian shareholders owning about 26 million EnviroLeach shares, equivalent to 70.27% of the company's outstanding share capital.

In addition, Iberian will receive 2 million, or 5.41%, of EnviroLeach shares and will also be issued a C$1.6 million promissory note. Iberian's Mineworx Technologies Inc. unit will also receive a free sub-license to use the technology in its business operations, providing it is not in competition with EnviroLeach.

The spinout remains subject to various conditions including regulatory and shareholder approvals.