CellCube Appoints Neylan Chairman of Spinout Company, V23 Resource Corp.
Date:Jul 25, 2018
CellCube Energy Storage Systems Inc. (formerly Stina Resources Ltd.) (“CellCube” or the “Company”) (CSE: CUBE) (OTCQB: CECBF) (Frankfurt: 01X).
Further to its Press Release of June 28, 2018, CellCube Energy Storage Systems is pleased to announce further details involving the spinout of its 100-per-cent-owned vanadium project, the Bisoni Mackay and Bisoni-Rio in Nevada, into a newly formed subsidiary, V23 Resource Corp. (“V23 Corp.”)
CellCube has now completed the incorporation of V23 Resource Corp. and appointed Mr. Mike Neylan chairman of the company. Mr. Neylan has over 20 years of extensive financial, legal and international corporate experience. Most recently, he was a portfolio manager in the private equity division of Sprott Inc. (“Sprott”), a leading alternative investment manager with over $11 billion in assets under management, where he was primarily responsible for establishing Sprott Asia. While at Sprott, he helped raise over $500 million of institutional investment capital from China and Korea and executed over $300 million of investments predominantly in the resource and renewable power sectors.
“I am very enthused to be leading the structuring and implementation of V23 Corp. as a standalone vanadium resource company,” Neylan stated. “Over the coming weeks, we will be assembling a highly qualified board of directors and management team as we prepare to finalize the spinout and distribution to CellCube shareholders of V23 Corp. shares beginning in September this year.”
The price of vanadium pentoxide has risen from a low of $2.5/lb in 2016 (through $4.2/lb in 2017) to a 9-year high of almost $17.0/lb today. Vanadium, widely used as an alloy to strengthen steel and in vanadium flow batteries for the energy storage industry, is the best-performing battery metal over this time period surpassing cobalt, copper and nickel.
Upon completion of the spinout arrangement, the company intends to issue one share of V23 Corp. for every two shares of CellCube held by CellCube shareholders of record. The company intends to retain a 19.9-per-cent interest in V23 Corp.
Spinout transaction highlights:
•V23 Corp. will be a publicly listed independent vanadium exploration and production company with advanced projects in Nevada.
•Distribution of a share dividend to CellCube shareholders with CellCube retaining a 19.9-per-cent ownership as well as certain offtake rights and a net smelter royalty.
•The formation of a new pure play vanadium company, V23 Corp, that will fast-track its drilling programs on the vanadium projects to upgrade its indicated and inferred resources. On completion of the planned drilling, a new National Instrument 43-101 technical report will be commissioned to develop a new resource estimate. It is planned to follow this by commissioning a preliminary economic assessment.
