Silver Elephant to spin-out battery metals assets

Canada’s Silver Elephant Mining (TSX: ELEF; US-OTC: SILEF) is splitting its battery metals assets into several new companies that will be spun-out to its shareholders to focus on precious metals exploration. 

The Vancouver-based company said its Minago nickel project in Manitoba and the Gibellini vanadium project in Nevada, and certain battery metals royalties, will become separate entities and its shares distributed among Silver Elephant shareholders. 

For each share of Silver Elephant, each investor will receive one share of the Minago spin out and one share of the Gibellini spin out. They will also receive two shares of Battery Metals Royalties, a unit that receives a percentage of the minerals produced at mines it doesn’t own or part of the revenues or profits generated from the sale of those minerals.  

As a result, Silver Elephant investors will collectively hold about 55% of the shares of the Minago spin of, 55% of the Gibellini’s and 70% of Battery Metals Royalties. About 45% of the shares of the Minago and Gibellini spinouts will be transferred to Battery Metals Royalties. Battery Metals Royalties will also hold 2% royalties on Minago and Gibellini. 

Minago Nickel hosts a measured and indicated mineral resource of 44.23 million tonnes grading 0.74% nickel for 722 million lb. nickel and an inferred resource of 19.55 million tonnes grading 0.74% nickel for 319 million lb. nickel. 

Gibellini has a 2018 preliminary economic assessment study for an open pit, heap leach operation to produce 9.65 million lb. of vanadium oxide per year over 13.5 years. Initial capex was estimated at US$117 million.

Gibellini has measured and indicated resource of 22.95 million short tons grading 0.29% V205% for 131.3 million lb. of contained V2O5, and an inferred resource of 14.97 million short tons grading 0.18% V205 for 52.3 million lb. V205. The Gibellini project also contains the Louie Hill deposit, which has inferred resources of 7.52 million short tons grading 0.28% V205 for 41.5 million lb. V205.

The company will continue to hold the Pulacayo silver and El Triunfo gold-silver projects in Bolivia, as well as about 30% of the issued and outstanding battery metals royalty shares as a long-term investment. 

At Pulacayo, the company is carrying out a 2,000 metre drill program to test several IP anomalies with assay results expected next month.