The LOI outlines the proposed terms and conditions of a possible transaction pursuant to which Mayo and WestMountain would negotiate to seek to effect a three-cornered amalgamation of a wholly-owned subsidiary of Mayo and WestMountain that would result in Mayo indirectly acquiring all of the outstanding share capital of WestMountain (the 'Contemplated Transaction'). The combined entity resulting from the Contemplated Transaction would continue to carry on the combined businesses of Mayo and WestMountain.
The Contemplated Transaction remains subject to Mayo and WestMountain negotiating and entering into a definitive agreement and the receipt of all regulatory and shareholder approvals. In the event a definitive agreement is reached, Mayo will issue a comprehensive press release pursuant to the policies of the Canadian Securities Exchange.
Mayo has five properties covering 244 square kilometres where it has completed exploration over the last 12 years. Mayo plans to drill prospective gold targets within the Anderson Gold Belt and to trench its
Contemplated Transaction - Key Items: The LOI contemplates that Mayo would issue WestMountain shareholders that number of Mayo common shares at a deemed value of
The Mayo board of directors would be reconstituted and consist of three directors nominated by current Mayo shareholders and two directors nominated by current WestMountain shareholders.
Mayo would assume a principal amount of US
Mayo Financings: Mayo is currently advancing its previously-announced (
Subsequent to the completion of Mayo's current private placement, Mayo intends to conduct a second private placement outside of the
About
Mayo is actively engaged in the exploration and development of five precious metal projects in the Tombstone Gold (Plutonic) Belt of the
Contact:
Email: tsutherland@mayolakeminerals.com
About
WestMountain is a junior mineral exploration and development company that is seeking to explore and develop its current prospective advanced-stage gold project in
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact should be considered forward-looking statements. The forward-looking statements are based on certain expectations and assumptions made by management of Mayo and WestMountain.
Forward-looking statements are provided for the purpose of providing information about the current expectations and plans of management of Mayo and WestMountain. Readers are cautioned that reliance on such statements and information may not be appropriate. Since forward-looking statements and information address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could, and often do, differ materially from those currently anticipated due to a number of factors and risks, many of which are beyond the control of Mayo and WestMountain. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this news release. Because Mayo and WestMountain have entered into a non-binding letter of intent, there is no assurance whatsoever that the Contemplated Transaction will occur. Further, there is no assurance that Mayo will be able to raise the necessary capital to proceed with the Contemplated Transaction. Both Mayo and WestMountain have limited capital. The forward-looking statements contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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