Pan American Energy Intends To Spin-Out Utah Property

VANCOUVER – Pan American Energy Corp. reported that, following careful review, it intends to “spin-out” its Green Energy Lithium Project, located in Cane Creek Anticline, Grand County, Utah, into a wholly-owned subsidiary (Subco). Following the transfer of the Property to Subco, the Company intends to distribute all, or the majority, of the Subco common shares to its existing shareholders on a pro rata basis and pursue a listing of Subco’s common shares on a Canadian stock exchange. The transaction is currently anticipated to proceed by way of a plan of arrangement under the Business Corporations Act (British Columbia). There will be no change in shareholders’ holdings in Pan American as a result of the Arrangement.

Jason Latkowcer, Chief Executive Officer, said, “The Spin Out allows us to more acutely focus our human capital and other resources. By narrowing our focus to two assets, we believe that we will be able to more effectively advance our exploration pursuits at the Big Mack Lithium and Horizon Lithium Projects. We feel that our Utah assets are not well reflected in the value of the Company, and believe that the Spin Out will create additional potential value for our shareholders through the recognition of the value of these assets in Subco. We will continue to support the management team of Subco to execute on ongoing permitting and other strategic initiatives.”