Cruz Battery Metals Provides Update on Proposed Spin Out of Hector Property by way of Plan of Arrangement and Announces Share Distribution Date of December 23, 2024

Cruz Battery Metals Corp. has announced it is moving forward with its previously disclosed plan of arrangement to spin out the Hector Property through its wholly-owned subsidiary, Makenita Resources Inc. The arrangement will be executed under Part 9, Division 5 of the Business Corporations Act (British Columbia), with the share distribution date set for December 23, 2024.

This corporate restructuring follows a series of announcements dating back to August 2024, indicating a methodical approach to separating the Hector Property assets from Cruz's main operations. The spin-out structure suggests Cruz is looking to unlock value in its portfolio by creating a focused vehicle for the Hector Property, potentially allowing for more targeted development and investment.

The timing of this arrangement, coming at year-end, positions both Cruz and the newly independent Makenita for a fresh start in 2025. For Cruz shareholders, the distribution represents an opportunity to maintain exposure to the Hector Property while allowing Cruz to concentrate on its core assets. This type of corporate reorganization has become increasingly common in the junior mining sector as companies seek to optimize their asset portfolios and create clearer investment theses for different projects.

The completion of this arrangement will create two distinct entities, potentially improving the ability of each to access capital markets and pursue development strategies tailored to their specific assets. This move reflects broader trends in the battery metals sector where companies are increasingly focused on creating pure-play investment opportunities aligned with the growing demand for critical battery materials.