Electric Metals Advances Discussions With Prospective Buyers for Nevada Silver Assets Following Termination of Previous Agreement

Electric Metals (USA) Limited (EML) announced the automatic termination of its definitive purchase and sale agreement with Ameerex Corporation for the sale of its non-core Nevada silver assets, specifically the Corcoran and Belmont properties. The termination was triggered by Ameerex’s failure to remit the second scheduled purchase payment of US$1,100,000.

Under the terms of the agreement, Electric Metals retained US$350,000 from previously received payments and fees. The company is now actively soliciting expressions of interest from new prospective purchasers for the Nevada assets. Management reaffirmed that the Nevada assets are non-core and that strategic focus and capital allocation remain directed toward advancing the North Star Manganese Project in Minnesota.

Electric Metals (USA) Limited (EML) faces a minor setback to near-term cash generation following the termination of the Ameerex deal, though this carries no material impact on the company's core manganese thesis. The retained US$350,000 provides negligible working capital relief against a quarterly burn rate exceeding $500,000.

The failure to close a previously announced US$3.5M transaction highlights execution risk and buyer hesitation regarding non-core assets, which may signal broader market skepticism toward the company's ability to monetize legacy holdings. Given the company's pre-revenue status and explicit going concern warning, any delay in asset monetization increases reliance on equity financings, which will be dilutive to existing shareholders.

The market reaction is likely muted as the valuation of Electric Metals is fundamentally tied to the North Star manganese project's PEA and FEL-1 results, not the Nevada silver assets.

Electric Metals (USA) Limited is a pre-revenue junior mining company focused on establishing a domestic U.S. supply chain for high-purity manganese. Its flagship asset is the North Star Manganese Project (Emily Mine), located in Minnesota's Cuyuna Iron Range. The project aims to produce High-Purity Manganese Sulfate Monohydrate (HPMSM) for EV battery cathodes and Electrolytic Manganese Metal (EMM) for specialty steels and defense applications. The U.S. relies 100% on imports for manganese, with China controlling ~96% of global HPMSM processing.

A Preliminary Economic Assessment released in August 2025 projected an after-tax NPV10 of US$1.39 billion, an after-tax IRR of 43.5%, average annual after-tax cash flow of US$249.6 million, and initial capital expenditure of US$474.8 million. Subsequently, a Front-End Loading 1 (FEL-1) Study completed in September 2026 validated the HPMSM plant capital cost at US$452 million for a 200,000 tpy facility, representing a ~3% cost reduction versus the PEA. The study also established a US$98.6 million capital cost for an integrated 10,000 tpy EMM circuit. The project is currently in the resource definition and engineering optimization phase, with a planned transition to a Pre-Feasibility Study in 2026.