back Global Cobalt (V.GCO) names spin-out company, stock advances | Stockhouse
June 3, 2015 | Category: Cobalt News
Global Cobalt Corp. (TSX: V.GCO, Stock Forum) shares rose 17% to 3.5 cents Tuesday, after the company said it has put a name on a spin-out company set up to contain certain North American mineral exploration projects.
SpinCo is called Global Energy Metals Corp., a name that reflects the company's strong focus on those metals that are fundamental to the battery and energy sector and the increasingly international scope of its business activities, Global Cobalt said in a press release.
At current levels, Global Cobalt has a market cap of $3.5 million, based on 99.9 million shares outstanding. The 52-week range is 14 cents and 3 cents.
Global Energy Metals will be focused on mergers and acquisitions and project development in battery metals projects, including the Iron Creek cobalt-copper property in Idaho and Werner Lake cobalt project near Kenora, Ontario.
Global Cobalt will focus on the Karakul and Altai Satellite projects in Russia.
"We are convinced that the spin out and new organizational structure is the correct strategy, one which will enhance shareholder value by providing a sharper strategic focus for both companies moving forward," said Global Cobalt President and CEO Erin Chutter.
"The reorganization will unlock value and enable us to accelerate the expansion of our North American projects in Global Energy Metals Corp. while providing shareholders exposure to Karakul and Altai Satellites that will remain Global Cobalt," she said.
The company said it is pleased to confirm the following dates with respect to the spin-out transaction and plan of arrangement. They are as follows:
- June 10, 2015 is the record date for voting at the annual general special meeting.
- June 15, 2015, mailing of information circular.
- The record date for Global Cobalt shareholders to receive Global Energy Metals shares will be as of the effective date, which is expected to be July 20, 2015.
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