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Cruz Announces Record Date of October 29th for Spin-Out of Hector Silver-Cobalt Project

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Cruz Battery Metals (CSE: CRUZ) has set October 29, 2024, as the record date for its planned spin-out of the Hector Silver-Cobalt Project to its wholly-owned subsidiary, Makenita Resources. Through this arrangement, shareholders will receive 0.1 Makenita shares for each Cruz Class A Share while maintaining their existing Cruz shares. The Hector Property consists of 126 contiguous unpatented mineral claims totaling 2,243 hectares in Ontario. Makenita plans to raise approximately $500,000 through securities offerings and seeks listing on the CSE. The arrangement requires court approval and two-thirds shareholder approval at the December 11, 2024 meeting.

Cruz Battery Metals (CSE: CRUZ) ha fissato il 29 ottobre 2024 come data di registrazione per la prevista scissione del Progetto Hector Silver-Cobalt nella sua controllata Makenita Resources. Attraverso questo accordo, gli azionisti riceveranno 0,1 azioni Makenita per ogni azione di Classe A di Cruz, mantenendo le loro azioni di Cruz esistenti. La Proprietà Hector consiste in 126 concessioni minerarie non brevettate contigue che si estendono per un totale di 2.243 ettari in Ontario. Makenita prevede di raccogliere circa $500.000 tramite offerte di titoli e cerca di ottenere una quotazione sulla CSE. L'accordo richiede l'approvazione del tribunale e l'approvazione di due terzi degli azionisti nell'incontro del 11 dicembre 2024.

Cruz Battery Metals (CSE: CRUZ) ha establecido el 29 de octubre de 2024 como la fecha de registro para su planificada escisión del Proyecto Hector Silver-Cobalt a su subsidiaria de propiedad total, Makenita Resources. A través de este arreglo, los accionistas recibirán 0.1 acciones de Makenita por cada acción Clase A de Cruz, manteniendo sus acciones existentes de Cruz. La Propiedad Hector consiste en 126 concesiones mineras no patentadas contiguas que suman un total de 2.243 hectáreas en Ontario. Makenita planea recaudar aproximadamente $500,000 a través de ofertas de valores y busca listar en la CSE. El arreglo requiere la aprobación del tribunal y la aprobación de dos tercios de los accionistas en la reunión del 11 de diciembre de 2024.

Cruz Battery Metals (CSE: CRUZ)는 헥터 실버-코발트 프로젝트의 전액 소유 자회사인 Makenita Resources로의 계획된 분할을 위해 2024년 10월 29일을 기록일로 설정했습니다. 이 arrangement를 통해 주주들은 Cruz 클래스 A 주식 1주당 Makenita 주식 0.1주를 받을 것이며 기존의 Cruz 주식을 유지합니다. 헥터 소유지는 온타리오주에 있는 1,226개의 연속적인 비특허 광물 청구권으로 총 2,243헥타르에 해당합니다. Makenita는 증권 공모를 통해 약 500,000달러를 모금할 계획이며 CSE에 상장될 것을 목표로 하고 있습니다. 이 arrangement는 법원 승인과 2024년 12월 11일의 주주 회의에서 3분의 2의 주주 승인을 요구합니다.

Cruz Battery Metals (CSE: CRUZ) a fixé le 29 octobre 2024 comme date d'enregistrement pour sa séparation prévue du Projet Hector Silver-Cobalt vers sa filiale à part entière, Makenita Resources. Dans le cadre de cet arrangement, les actionnaires recevront 0,1 action Makenita pour chaque action de Classe A de Cruz tout en conservant leurs actions Cruz existantes. La propriété Hector se compose de 126 titres miniers adjacents non brevetés totalisant 2 243 hectares en Ontario. Makenita prévoit de lever environ 500 000 dollars par le biais d'offres de valeurs mobilières et souhaite être cotée à la CSE. L'arrangement nécessite l'approbation du tribunal et l'approbation des deux tiers des actionnaires lors de la réunion du 11 décembre 2024.

Cruz Battery Metals (CSE: CRUZ) hat den 29. Oktober 2024 als Stichtag für die geplante Abspaltung des Hector Silver-Cobalt-Projekts an ihre hundertprozentige Tochtergesellschaft Makenita Resources festgelegt. Im Rahmen dieses Arrangements erhalten die Aktionäre 0,1 Makenita-Aktien für jede Cruz-Aktie der Klasse A und behalten ihre bestehenden Cruz-Aktien. Das Hector-Grundstück besteht aus 126 angrenzenden, unpatentierten mineralischen Ansprüchen mit einer Gesamtfläche von 2.243 Hektar in Ontario. Makenita plant, etwa 500.000 US-Dollar durch Wertpapierangebote zu beschaffen und strebt eine Notierung an der CSE an. Das Arrangement erfordert die Genehmigung des Gerichts und die Genehmigung von zwei Dritteln der Aktionäre in der Sitzung am 11. Dezember 2024.

Positive
  • Shareholders receive free Makenita shares while maintaining 100% of Cruz shares
  • Company has over $1 million in treasury providing financial flexibility
  • Planned $500,000 financing for Makenita to fund exploration activities
Negative
  • Dilution of Cruz's asset portfolio through spin-off of Hector Property
  • Additional financing required for Makenita's operations

Vancouver, British Columbia--(Newsfile Corp. - October 25, 2024) - Cruz Battery Metals Corp. (CSE: CRUZ) (OTC Pink: BKTPF) (FSE: A3CWU7) ("Cruz" or the "Company") wishes to announce that, further to its news release dated August 1, 2024 and September 6, 2024 (the "Arrangement Agreement") it has entered into an arrangement agreement with its wholly-owned subsidiary, Makenita Resources Inc. ("Makenita"), pursuant to which the Company intends to: (i) transfer all of its rights, title and interest in and to its Hector Silver-Cobalt Project (the "Hector Property"), consisting of 126 contiguous unpatented mineral claims totaling 2,243 hectares (5,542-acres), located within the Coleman and Gillies Limit Townships, Larder Lake Mining Division, Timiskaming District, Ontario, Canada, and (ii) spin-out all of the securities of Makenita received in consideration for the Hector Property (the "Makenita Spinout Share") to Cruz's securityholders on a pro rata basis, all pursuant to a statutory plan of arrangement (the "Arrangement") to be effected under Part 9, Division 5 of the Business Corporations Act (British Columbia) (the "BCBCA").

The record date will be October 29, 2024. The mailing date will be November 5, 2024 and the Meeting date will be December 11, 2024. The meeting is being held by Notice and Access and we recommend and encourage everyone to vote in person or by proxy in support of the Arrangement.

James Nelson, President of Cruz states, "You must be a shareholder of record on October 29, 2024 to receive the free shares of Makenita. Not only will you gain free exposure to Makenita, you will still maintain 100 percent of your Cruz shares as well. This is a very nice bonus for shareholders of record to receive free shares without any additional cost to them. Cruz has well over a million dollars in the treasury currently allowing Cruz the ability to be nimble and opportunistic to maximize the shareholders' value in the short and medium term going forward. Management is optimistic about both Cruz shares going forward and the new company Makenita, as it will start off with clean share structure at a time when the junior markets are showing strong signs of recovery."

The Arrangement will result in Makenita becoming a separate "reporting issuer" in each of Alberta, British Columbia and Ontario, and will allow it to focus on the development of the Hector Property. The Hector Property will be Makenita's material property for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The Company will focus on the development of its Solar Lithium Project and Clayton Valley Lithium Project in Nevada, and its Idaho Cobalt Belt Project in Idaho (collectively, the "US Properties") and intends to seek to acquire more advanced assets of business opportunities of merit.

The Transaction

The Arrangement will include a transfer of the Hector Property to Makenita, a share capital reorganization of Cruz, and a securities exchange whereby, among other things, Cruz's shareholders will receive Makenita Spinout Shares. The existing common shares in the capital of Cruz will be renamed and redesignated as Class A common shares (each, a "Cruz Class A Share") and Cruz will create a new class of voting common shares (each, a "New Cruz Share"). Each Cruz Class A Share will be exchanged for one New Cruz Share and 0.1 of a Makenita Spinout Share. As part of the Arrangement, all outstanding Cruz stock options, warrants and restricted share units will be adjusted to allow holders to acquire, upon exercise, New Cruz Shares and common shares of Makenita (each, a "Makenita Share") in amounts reflective of the relative fair market values of Cruz and Makenita at the effective time of the Arrangement.

On completion of the Arrangement, Cruz shareholders and holders of Cruz stock options, warrants and restricted share units will maintain their interest in Cruz and will obtain a proportionate interest in Makenita.

In connection with the Arrangement, Makenita intends to seek a listing of the Makenita Shares on the Canadian Securities Exchange ("CSE"). Additionally, Makenita will undertake one or more offerings of securities to raise gross proceeds of approximately $500,000 (the "Makenita Financing"), or such other amount as the board of directors of Makenita may determine, to, among other things, finance its exploration activities on the Hector Property and to fund its working capital requirements. Jason Gigliotti will be the President of Makenita. Certain insiders of Cruz may participate in the Makenita Financing. Accredited investors may contact Jason Gigliotti directly with questions or interest in the planned placement. Toll free at 1.855.646.6901 or makenitaresources@gmail.com.

Approvals

The Company intends to obtain an interim order (the "Interim Order") from the Supreme Court of British Columbia (the "Court") to authorize the Company to call a shareholder's meeting to, among other things, approve the Arrangement. The Arrangement will be subject to, among other conditions, final court approval, approval by not less than two-thirds of the votes cast at the special shareholder's meeting of Cruz shareholders (the "Meeting"), and approval of the CSE.

The Arrangement is anticipated to be completed by the end of the fourth quarter of 2024, subject to receipt of the aforementioned approvals and satisfaction of other closing conditions.

For more information on the Arrangement, please see the Company's news release dated August 1 2024, and September 6, 2024.

About Cruz Battery Metals Corp.

Cruz currently has several projects located throughout North America. Cruz's Nevada lithium projects consist of the 4,938-acre 'Solar Lithium Project' and the 240-acre 'Clayton Valley Lithium Project'. Cruz's 5,542-acre Hector Property is located in the vicinity of the town of Cobalt, Ontario, which is prospective for cobalt, silver and diamonds. Cruz also has the 124-acre 'Idaho Cobalt Belt Project'. Management cautions that past results or discoveries on properties in proximity to Cruz may not necessarily be indicative of the presence of mineralization on the Company's properties. If you would like to be added to Cruz's news distribution list, please send your email address to info@cruzbatterymetals.com.

Cruz Battery Metals Corp.

"James Nelson"

James Nelson
President, Chief Executive Officer, Secretary and Director

For more information regarding this news release, please contact:
James Nelson, CEO and Director
T: 604-899-9150
Toll free: 1-855-599-9150
E: info@cruzbatterymetals.com
W: www.cruzbatterymetals.com
Twitter: @CruzBattMetals

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including whether or not the Company will proceed with the Spin-Out as currently proposed or at all, the anticipated timeline of the Spin-Out, the expected terms and structure of the Spin-Out and the parties' ability to satisfy closing conditions and receive necessary approvals and the belief that the Spin-Out will provide value as a stand-alone asset. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements such as the inability to obtain regulatory, Court or shareholder approval, the inability of Cruz or SpinCo to finance growth and transactions expenses, and other risks as set out in the Company's periodic disclosure documents available on SEDAR+. Although such statements are based on management's reasonable assumptions, there can be no assurance that the Spin-Out will occur or that, if the Spin-Out does occur, it will be completed on the terms described above. The Company does not assume any responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227719

FAQ

What is the record date for Cruz Battery Metals (BKTPF) Hector Project spin-out?

The record date for Cruz Battery Metals' Hector Project spin-out is October 29, 2024.

How many Makenita shares will BKTPF shareholders receive in the spin-out?

Shareholders will receive 0.1 Makenita shares for each Cruz Class A Share they own.

When is the shareholder meeting for BKTPF's Hector Project spin-out?

The shareholder meeting is scheduled for December 11, 2024.

How much financing is Makenita planning to raise from the BKTPF spin-out?

Makenita plans to raise approximately $500,000 through securities offerings.

CRUZ BATTERY METALS CORP

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