The Metalstech Ltd (ASX: MTC) share price has jumped out of the starting blocks on Wednesday and landed firmly in the green.
Metalstech shares are on the move after the company delivered an investor presentation on its planned lithium asset spin-out today.
Let’s investigate further.
A bit of background information
Recall that Metalstech lodged a “short form prospectus” and called for shareholder voting on the spin-out of its lithium projects to Winsome Resources earlier this year.
Major shareholders indicated support for the spin-out early on, and advocated for a separate ASX listing of Winsome Resources.
Under the arrangement, Metalstech shareholders are to receive “$9 million worth of shares in spin out by way of an in species distribution” of 45 million Winsome shares.
This equates to approximately one “free (Winsome) 20 cent share for every 3.5 (Metalstech) shares held”.
As a result of the spin-out, Winsome will focus on developing the “100% owned” Cancet, Adina and Sirmac–Clapier Lithium lithium projects in Quebec, Canada.
Metalstech also stated that Winsome’s initial public offering (IPO) will occur on a valuation of $12 million to $18 million. Winsome will trade under the ticker “WR1”.
Metalstech shareholders will have their say on 4 October, when they will vote on successfully passing the lithium assets over to Winsome.
What did Metalstech announce today?
In what was deemed a positive for the Metalstech share price, the company gave an update and presentation on its lithium spin-out entitlements.
In its report, Metalstech outlined the opportunity at hand, explaining its positioning within the world of battery manufacturing.
The company believes that the battery “value chain” has a number of “social, environmental and integrity issues”.
This coincides with the fact that most of the world’s lithium reserves are in “Australia, Argentina, Chile and China”. As such, Metalstech believes its assets “offer greater diversity”.
Metalstech also explained its Quebec lithium projects are “strategically located” near “established infrastructure and supply chain”.
Investors have bought on the news, and are driving the Metalstech share price higher today.
Metalstech shares are now exchanging hands at 30 cents apiece, a 15.38% gain from the market open.
Metalstech share price snapshot
The Metalstech share price has climbed 44% this year to date. This extends the gain over the previous 12 months to 40%.
In the past month alone, Metalstech shares have climbed a further 31% in the green.
These results have outpaced the S&P/ASX 200 Index (ASX: XJO) return of around 25% over the past year.
The post Metalstech (ASX:MTC) share price jumps 15% on lithium spin out update appeared first on The Motley Fool Australia.
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More reading
- Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
- Why the Metalstech (ASX:MTC) share price is rocketing 16% on Friday
- Why the MetalsTech (ASX:MTC) share price is soaring 15% today
The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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