(via TheNewswire)
Key terms of the transaction are as follows:
Emergent will grant IE the option (“Option”) to acquire 100% of the Property.
The term of the Option (the “Option Term”) will be approximately 18 months ending on
August 1, 2025 .In consideration for the Option, IE will pay Emergent
US$300,000 upon signing of the Agreement (the “Option Payment”), of which approximatelyUS$157,000 will be used by Emergent to satisfy certain land payment obligations in respect of the Property.IE will have the exclusive right to conduct exploration on the Property during the Option Term.
IE will be responsible for claim maintenance payments during the Option Term.
Should IE elect to exercise its Option to purchase the Property, the purchase price will be
US$2.0 million (the “Purchase Price”) which includes the Option Payment ofUS$300,000 and remaining purchase price ofUS$1,700,000 (the “Remaining Purchase Price”).US$700,000 of the Remaining Purchase Price will be paid in cash (the “Cash Payment”).US$1.0 million of the Remaining Purchase Price will be paid in common stock of IE (the Share Payment”), to be issued at the higher of (1) the IESeptember 19, 2023 , follow-on public offering price ofUS$13.50 per share or (2) the 30-day volume weighted average price determined on the date of exercise notice, but subject to stock exchange rules as well as a possible cash top-up in certain circumstances based on IE’s future share price.On closing of the exercise of the Option, Emergent will reserve a 1%
Net Smelter Royalty (the “Production Royalty”) on claims within the Property that are not already encumbered with a royalty of 1% or greater from previous owners. However, IE will have the right prior to the commencement of commercial production, to buy-out the Production Royalty for a purchase price ofUS$2.0 million in cash and/or IE shares (the “Royalty Buyout”).IE shall also retain a first right of refusal to acquire the Production Royalty in the event that Emergent wishes to sell, assign, or transfer the Production Royalty to an unaffiliated third party.
The transaction will occur between IE’s subsidiary
About Emergent
Emergent is a gold and base metal exploration company focused on
them through sale, joint ventures, option, royalty, and other transactions to create value for our shareholders (an acquisition and divestiture business model).
In
In
Note that the location of Emergent’s properties adjacent to producing or past producing mines does not guarantee exploration success at Emergent’s properties or that mineral resources or reserves will be delineated. For more information on the Company, investors should review the Company’s website atwww.emergentmetals.comor view the Company’s filings available atwww.sedarplus.ca.
On behalf of the Board of Directors
President & CEO
For further information please contact:
Tel: 530-271-0679 Ext 101
Email:info@emergentmetals.com
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Cautionary Note on Forward-Looking Statements
Certain information contained in this news release constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”). Without limiting the foregoing, such forward-looking information includes statements regarding the process and completion of the Offering, the use of proceeds of the Offering and any statements regarding the Company’s business plans, expectations and objectives. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking information. Forward looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management’s good faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company’s most recent Management’s Discussion and Analysis and financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedar.com under the Company’s profile and on the Company’s website at www.emergentmetals.com. The forward-looking information set forth herein reflects the Company’s expectations as at the date of this news release and is subjectto change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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