Lancaster Resources, a United States-based mining exploration and production company, recently announced that it has entered into an agreement with its wholly owned subsidiary to spin off the subsidiary and declare a record date. The record date for the spinoff is yet to be determined.
The Lancaster Resources subsidiary, which is called Lancaster Logistics (LL), enables the company to provide expert geotechnical services, raw material procurement, and logistical management assistance to its clients. LL has assets in Russia, South Africa, Peru, and the United States.
In a statement released by principal executive officers of the company, Lancaster Resources said that the spinoff of LL would allow them to focus exclusively on the exploration and production of mineral resources and significantly reduce the associated operational and financial risks for their parent company.
The announcement also revealed that the spinoff is subject to regulatory approval, but that Lancaster Resources remains confident that the spinoff will be completed after the record date is established.
The record date is the date after which potential investors will be eligible to purchase shares in Lancaster Logistics and receive a pro-rata portion of any divided distributions declared according to the plan.
In a separate announcement, the parent firm, Lancaster Resources, stated that it will begin making payments to shareholders after the record date is established. The spinoff is expected to benefit shareholders in both companies, increasing their exposure to the natural resources explorations and production market.