MetalsTech (ASX:MTC) has opted to take the spin-off route to provide its high-grade lithium assets in Quebec, Canada, the attention they deserve at a time when battery metals are booming.

Under the spin-off, the Cancet, Adina and Sirmac-Clapier lithium projects will form the core assets of a new ASX-listed company, allowing MetalsTech to focus on the +1Moz Sturec gold mine in Slovakia.

MTC will receive 22 million shares in the new company and will distribute them on a pro-rata basis to its existing shareholders, who will also have the opportunity to subscribe for more shares in the new company under a $2m priority participation offer.

The new company will seek to raise $5m through an initial public offering of 25 million shares priced at 20c each.

“Although we are firmly focused on developing our flagship +1Mox Sturec gold mine, our portfolio of high-grade lithium assets are valuable,” chairman Russell Moran said.

“A spinout of the lithium assets into a separate listing provides a non-dilutive and ‘off-balance sheet’ solution for accelerated development in what is now a booming battery metals sector.”

Cancet, the most advanced of the three lithium assets, hosts an exploration target of between 15Mt and 25Mt grading 1 per cent to 2 per cent lithium oixide and 100ppm to 250ppm tantalum.

Recent exploration included a 59-hole diamond drill program totalling 5,216m that returned results such as 18m at 3.71 per cent lithium oxide and 301ppm tantalum and 21.46m at 2.24 per cent lithium oxide and 310ppm tantalum.

Joining the spin-off train

MetalsTech is just one of several resources companies attempting to spin-off their non-core assets into new companies seeking ASX listings.

Jadar Resources (ASX:JDR) is spinning out its Serbian lithium and borate assets into a new ASX listed company while Middle Island Resources (ASX:MDI) is demerging its Barkly copper-gold project in the Northern Territory.

Meanwhile, Blackstone Minerals (ASX:BSX) is moving to spin-out its non-core gold assets into a new ASX-listed company, Codrus Minerals.

The ASX is also poised to welcome manganese explorer Firebird Metals (ASX:FRB), a spin-off of Firefly Resources (ASX:FFR) as its newest member.