Recharge Resources to Spin Out Two Mining Companies in Corporate Restructuring

Recharge Resources Ltd. announced plans to transform its corporate structure by spinning out two new publicly traded mining companies: Blackstone Copper Corp. and Brookefield Minerals Corp. Effective March 7, 2025, the company will change its name to Vanguard Mining Corp. and its trading symbol from RR to UUU. CEO David Greenway explained the rationale behind the spinout, stating that the current market does not fully value the company's project portfolio. By creating two separate entities, each project will receive dedicated attention and potentially command a more appropriate valuation.

Blackstone Copper Corp. will own the Redonda Copper Project, located in British Columbia's Vancouver mining division. Recent drilling results showed promising copper and molybdenum concentrations, with some drill holes revealing up to 142.6 meters of 0.279% copper and 0.0281% molybdenum. This significant mineralization highlights the project's potential in a region known for its mining infrastructure and expertise. The spinout allows Blackstone Copper Corp. to focus exclusively on developing this copper asset, which could attract specialized investors interested specifically in copper exposure.

Brookefield Minerals Corp. will manage the Pinchi Lake Nickel Project, situated approximately 15 to 30 kilometers northwest of Fort St. James. The project features awaruite, a naturally occurring nickel-iron alloy, which offers potential environmental advantages due to its minimal processing requirements. This unique mineralogy could position Brookefield Minerals Corp. as an innovative player in the nickel sector, particularly as demand for nickel grows in battery manufacturing and other clean energy applications. The separation enables dedicated management and funding for this distinct nickel opportunity.

The spinout transaction remains subject to regulatory approvals, financial analyses, and market conditions. Recharge Resources shareholders will receive pro rata shares in these new companies, offering them potential additional value and investment opportunities in distinct mining ventures. This corporate restructuring represents a strategic move to maximize shareholder returns by allowing each mining project to be valued independently based on its specific merits and market potential. The transformation to Vanguard Mining Corp. signals a new corporate direction while maintaining shareholder exposure to the original company's remaining assets.