VANCOUVER, British Columbia, June 04, 2024 (GLOBE NEWSWIRE) -- Foremost Lithium Resource & technology Ltd. ( NASDAQ: FMST ) ( CSE: fat ) (“ Foremost Lithium ”,“ Foremost ” or the“ Company ”), is pleased to announce its intention to spin-out (the“ Spin-Out ”) the Company's gold and silver Winston Group of Properties (collectively, the“ Properties ” or the“ Winston Property ”) into a newly incorporated wholly-owned subsidiary to be named Rio Grande Resources Ltd (“ Rio Grande ” or“ RGR ”). It is expected that the Spin-Out will be affected by way of a plan of arrangement (the“ Arrangement ”).
The Company's Winston Group of Properties – situated over a 3,000-acre drill-ready site – contains three historic past producing gold and silver mines: Ivanhoe, Emporia and Little Granite located in Sierra County, New Mexico, USA. Pursuant to the proposed terms of the Arrangement, it is expected that for each common share of Foremost (“ Foremost Shares ”) , the shareholder will receive common share(s) of RGR at a ratio still to be determined (the“ RGR Shares ”). Following the completion of the Arrangement, it is expected that Foremost will retain an interest, with the remaining RGR Shares being distributed to Foremost shareholders on a pro rata basis relative to their holdings of Foremost Shares.
There will be no change in shareholders' relative holdings in Foremost as a result of the Spin-Out. The Spin-Out will be subject to shareholder, cour.
