09:06 AM EST, 01/28/2025 (MT Newswires) -- Foremost Clean Energy ( FMST ) dropped 5.9% at last look Tuesday in Nasdaq pre-market trading after saying the Rio Grande Resources spinout will take effect on Thursday.

Rio Grande will hold Foremost's gold and silver properties, allowing Foremost to focus on its uranium and lithium portfolios.

"We believe this strategic move will enhance shareholder value by creating a distinct pathway for growth in both companies," Jason Barnard, Foremost's president and CEO.

Under the terms, Foremost shareholders will receive one new Foremost common share and two Rio Grande common shares for each common share of Foremost held.

Foremost's share price jumped 7.4% on Monday to $2.90 on the CSE.