In a strategic move to enhance its operational focus, Canadian miner Liberty Gold has revealed plans to spin out its wholly owned subsidiary, which currently holds valuable mining projects, into a newly formed company named Specialty American Metals. This decision is set to benefit both entities by allowing them to concentrate on their core areas of expertise.

The newly established Specialty American Metals will primarily focus on the burgeoning specialty metals sector in the United States, with its initial focus directed at the promising Antimony Ridge discovery located within the Goldstrike Project in Utah. Meanwhile, Liberty Gold will shift its resources and attention towards advancing its Black Pine Oxide gold project situated in Idaho, which has garnered significant interest from investors and industry experts alike.

The proposed spin-out is structured through a formal plan of arrangement between Liberty Gold and Specialty American Metals. However, this arrangement is contingent upon receiving customary approvals, which include consent from shareholders, regulatory authorities, and the court system. These approvals are essential to ensure that the spin-out complies with legal requirements and that shareholders support the initiative.

Under the terms of the planned arrangement, Liberty Gold shareholders will receive a portion of Specialty American's common shares, although the exact distribution ratio will be determined at a later date. This means that shareholders will retain equity in both Liberty Gold and the newly created Specialty American Metals upon the completion of the spin-out, thereby maintaining their investment in both companies as they pursue their respective growth trajectories.

Furthermore, Liberty Gold will hold a stake in Specialty American Metals in recognition of its previous investments in the Goldstrike Project, ensuring that it remains connected to the potential growth and profitability of its subsidiary.

Leadership for Specialty American has already been established, with Liberty Golds CEO and director Cal Everett, along with director Greg Etter, agreeing to join the board of the new entity. The company has also identified suitable independent candidates to fill the remaining board positions, which is crucial for maintaining corporate governance and diverse perspectives within the leadership team.

Cal Everett commented on the move, stating: "The spin-out of the Antimony Ridge discovery from Liberty Gold into Specialty American Metals will provide a new vehicle for shareholders dedicated to unlocking the value potential of Antimony Ridge. This new company is well positioned to pursue further growth transactions in the specialty metals space in the US, which is increasingly vital in todays market driven by technology and renewable energy needs."

In terms of leadership structure, Russell Starr will be taking the helm as CEO of Specialty American, while Liberty Golds vice-president of Exploration, Peter Shabestari, will step into the role of president. Additionally, Joanna Bailey from Liberty Gold will continue her role as CFO, instilling continuity and expertise in the new organization.

Liberty Gold has made significant strides recently, particularly with key permitting milestones achieved for the Black Pine project, which are slated to unfold by November 2024. This positions both Liberty Gold and Specialty American Metals to capitalize on their respective developments in the mining sector as they navigate evolving market dynamics.

The announcement was originally reported by Mining Technology, a brand owned by GlobalData, indicating the importance of this development within the broader mining industry landscape.