Pan American to “spin-out” its Utah property

Pan American believes that its current share price does not fully recognise the value of the property, and that by completing the proposed arrangement, the shareholders of the company will benefit from unlocking the value of the property. Additionally, the arrangement will allow the company to concentrate its efforts on advancing its other projects – the Horizon Lithium project and the Big Mack Lithium project.

The company anticipates completing the arrangement on or about 15 March 2023. The completion of the arrangement will be subject to, amongst other things, entering into a definitive arrangement agreement giving effect to the arrangement, the receipt of all required regulatory and shareholder approvals and management’s continued discretion.

Jason Latkowcer, Chief Executive Officer of Pan American, commented:

“The spin out allows us to more acutely focus our human capital and other resources. By narrowing our focus to two assets, we believe that we will be able to more effectively advance our exploration pursuits at the Big Mack Lithium and Horizon Lithium projects. We feel that our Utah assets are not well reflected in the value of the company, and believe that the spin out will create additional potential value for our shareholders through the recognition of the value of these assets in Subco. We will continue to support the management team of Subco to execute on ongoing permitting and other strategic initiatives.”

Read the article online at: https://www.globalminingreview.com/mining/05012023/pan-american-to-spin-out-its-utah-property/