Emergent Metals Corp. Sells Claims to Lahontan Gold Corp.

Executive Summary

• Emergent Metals signed a binding term sheet to sell its York Claims (27 unpatented lode mineral claims) in Nevada to Lahontan Gold Corp.
• The deal includes an upfront cash payment of US$10,000, a US$50,000 promissory note (1% monthly interest), and issuance of 2 million Lahontan common shares to Emergent’s subsidiary (GAMC).
• Lahontan will grant GAMC a 1% NSR royalty on the York Claims, with an option for Lahontan to purchase the royalty for US$500k–$1M depending on timing.

Key Details

• Parties: Emergent Metals Corp. (through Golden Arrow Mining Corp.) and Lahontan Gold Corp.
• Asset: 27 unpatented lode mineral claims (“York Claims”) located south of Lahontan’s Santa Fe Property, Nevada.
• Cash Consideration: US$10,000 payable to GAMC upon signing the term sheet.
• Promissory Note: US$50,000 issued by Lahontan to GAMC on signing the definitive agreement; interest 1% per month; payable within six months of agreement execution.
• Equity Consideration: 2,000,000 common shares of Lahontan Gold Corp. issued to GAMC (or designee) upon signing the definitive agreement.
• Royalty Grant: Lahontan will grant a 1% Net Smelter Return (NSR) royalty on the York Claims to GAMC.
• Royalty Purchase Option:
• Before third anniversary of the agreement – Lahontan may buy out the royalty for US$500,000.
• Between third and seventh anniversary – purchase price rises to US$1,000,000.
• Closing Timeline: Transfer of York Claims to be completed within 30 days after cash payment, share issuance, and promissory note execution. Definitive agreement expected within 30 days of term‑sheet signing; subject to regulatory approvals.
• Strategic Rationale (Emergent): Converts non‑core asset into equity stake in Lahontan, providing upside as Lahontan advances its Santa Fe open‑pit heap leach gold project toward production.
• Strategic Rationale (Lahontan): Enables southward expansion of the York resource, potentially increasing the overall resource base adjacent to its existing Santa Fe Property.
• Related Developments:
• Emergent’s prior option agreement with Ivanhoe Electric Inc. was terminated in July, clearing the way for this transaction.
• Sale does not affect copper potential of remaining New York Canyon claims (Longshot Ridge, Copper Queen, Champion, Emma).
• Emergent continues to seek a new partner for further exploration at New York Canyon.

Notable Quotes

• David Watkinson, President & CEO, Emergent Metals:

  “Lahontan’s Santa Fe Property is a past‑producing open‑pit heap leach gold mine being fast‑tracked back into production… The Transaction allows Emergent to become a shareholder of Lahontan, and we believe these shares will have significant upside investment potential, as Lahontan advances Santa Fe towards production.”