Manganese X Energy Corp says it has reached an agreement to spin-out its wholly owned subsidiary Graphano Energy Ltd and its Lac Aux Bouleaux graphite property in southern Quebec, resulting in Graphano becoming an independent publicly traded company, Kallanish reports.

Manganese X shareholders will get one new common share of the company with identical terms for each common share held and one eighth of a common share in the capital of Graphano.

The plan must be approved by stockholders at a meeting, likely to be held in first quarter 2021.

Manganese X, with headquarters in Montreal, Quebec, intends to continue to focus on the exploration and development of its Battery Hill manganese project in New Brunswick and its Peter Lake copper-nickel-cobalt project in Quebec.

Graphano, a soon-to-be independent company to be listed on the Toronto Stock Exchange, will focus on the graphite property in Quebec. It covers about 738 hectares near the town of Mont-Laurier. It is south of TIMCAL’s graphite mine at Lac des Isles that produces 25,000 tonnes/year.

Manganese X says it subsidiary is expected to have the ability to source its own funding moving forward.

Graphano also reports that is has raised CAD 2.7 million ($2.1m) through a private placement of subscription receipts at a price of CAD 0.05 per subscription receipt.