06:53 AM EDT, 06/04/2024 (MT Newswires) -- Foremost Lithium Resource & Technology Ltd. ( FMST ) on Tuesday announced its intention to spin-out the company's gold and silver Winston Group of Properties into a newly incorporated wholly-owned subsidiary to be named Rio Grande Resources Ltd. It is, the company said, expected that the Spin-Out will be affected by way of a plan of arrangement.

Tuesday's statement noted 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, the shareholder will receive common share(s) of RGR at a ratio still to be determined. 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.

Tuesday's statement said the Spin-Out will be subject to shareholder, court, Canadian Securities Exchange, NASDAQ and regulatory approvals, as well as management's discretion. Subsequent to the completion of the arrangement, the company intends to list the shares of RGR on the CSE. Foremost will remain listed on the CSE and the NASDAQ. In order to appropriately capitalize RGR to pursue its business objectives immediately following the completion of the arrangement, it is anticipated that RGR will undertake a financing or financings of RGR Shares concurrently with the Spin-Out.

"The Winston Group of Properties has yet to realize its full value and this plan of arrangement will offer the time and attention the property deserves," said Jason Barnard, President and CEO of Foremost Lithium, in the statement. "These past producing gold and silver mines are within an extremely favourable geological environment and with gold recently hitting over $2,400/ounce, we also find ourselves in a favourable precious metals market. The spin out will provide tremendous upside potential for our shareholders as they gain a stake in two different meaningful projects."