American Manganese Inc (CVE:AMY) (OTCPINK:AMYZF) has unveiled plans to spin out its mining assets in British Columbia (BC) into a separate company to take advantage of the current bull market in precious and base metals.
In a statement after the market close on Thursday, the company, which is focused on recycling spent lithium-ion batteries, said it did not believe these valuable assets, notably its past-producing Rocher DeBoule property, was reflected in the group's share price.
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"A spin-out of our mining assets now would allow our shareholders to take advantage of the bull market in precious and base metals, especially in gold, copper and cobalt," said Larry Reaugh, chief executive officer at American Manganese.
The Rocher DeBoule property was in a good position to capitalize on this upsurge, he added, being an iron oxide copper gold ore (IOCG) target with past production.
The firm's 2,421 acre target lies 10 kilometers (km) from Hazelton, BC and contains several occurrences over a12km east, west direction.
The original Rocher Deboule mine generated 4,492 ounces of gold, 84,477 ounces silver and over 6.2 million pounds of copper. The Highland Boy mine there generated 10,493 pounds of copper. Metals from four mines at the site were mined and shipped to smelter by railroad.
Elsewhere, the group's rare earth Lonnie-Virgil property comprises claims over 1,817 acres, south-east of Manson Creek in North Central British Columbia.
It contains two showings defined by trenching with a combined strike length of 620 metres with widths ranging from 1-40 meters, grading 0.20% niobium. A 56-meter chip sample on the Brent carbonatite assayed .05% lanthanum, .03% neodymium and .15% titanium.
Fieldwork has identified four significant anomalies with soil sampling showing nearly 1% total rare earths plus additional niobium credits, said American Manganese.
"By contributing these mineral claims to a separate, newly formed company, AMY believes shareholders will benefit from the market's view on these assets," the firm said.
Shares in Toronto added over 11% to stand at C$0.20 each.
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