In February 2019, Hawkstone commenced a fully funded 37-hole diamond drilling program on the Big Sandy Project, which has produced exceptional results and high-grade intercepts with a peak lithium value of 4,380ppm to date. Image of drilling activities at the Big Sandy Project. Credit: Hawkstone Mining Limited.
Hawkstone Mining Limited (ASX: HWK) has announced that it will become a dedicated lithium company with its focus centred on the Big Sandy Lithium Project in Arizona, USA.
To achieve this, Hawkstone plans to spin-out its gold and gold-copper projects in the USA to form a separately listed company, Diablo Resources Limited (Diablo), with Hawkstone to change its name to Arizona Lithium Limited. The spin-out and change of name will be subject to shareholder approval.
In commenting on the spin-out, Hawkstone’s Managing Director, Paul Lloyd, said: “With the recent shift in market sentiment to battery minerals, we feel that Hawkstone shareholders will gain maximum value from the company’s gold and gold-copper assets via Diablo Resources, as a separate ASX listed entity.”
“Located in world-class gold and copper regions, these projects hold significant potential and the spin-out will provide shareholders with a non-dilutive and “off balance sheet” solution to accelerate exploration on these assets in a period of high gold and copper prices,” Mr Lloyd said.
“It will also allow the existing shareholders to participate in the new listing on a priority basis relative to their existing shareholding in HWK, as well as being rewarded with a significant stake by way of an in-specie distribution.”
“Diablo will have an exciting start to its ASX listing with the drilling of the Devil’s Canyon Gold Project, a Carlin-style project in Nevada, USA, 20 kilometres from a 5.9 million ounce resource , that returned high-grade rock chip samples. Many high priority drill targets have been identified from our recently completed exploration work.”