CEO Gary Thompson said that the new company would seek to gain market share by progressing its cobalt assets and by acquiring advanced stage projects in the battery metals space.
The assets earmarked for the spinout include the Hudson Bay and Langis mine projects, which previously produced a combined 16.8-million ounces of silver and 543 910 lb of cobalt. Both mines are located in the Cobalt camp, where junior miners are fuelling a new cobalt rush spurred by the booming battery market.
Miners are rushing to find alternative sources of cobalt in Canada and Europe to diversify supply of the key battery material. More than 60% of cobalt is supplied by the Democratic Republic of Congo, which continues to be dogged by claims of child labour and has recently increased its mine taxes and royalties.
Should shareholders approve the spinout, Brixton will tighten its focus on its precious metals projects. The company will maintain exposure to the cobalt assets through a retained equity interest in the spinout company.
The completion of a plan arrangement and any listing of the resulting entity will be subject to regulatory approval, and the approval of shareholders of the company and the Supreme Court of British Columbia.