Interconnect to acquire four claims on Vancouver Island

Transaction Overview

• Interconnect Ventures Corp. has entered into a mineral property purchase agreement to acquire four claims totaling 2,169.94 hectares near Sayward, B.C., on northern Vancouver Island.
• The acquisition cost is $45,000 in cash payable within five business days after TSX Venture Exchange acceptance.
• Concurrently, the company is launching a non-brokered private placement offering up to 10 million units at $0.05 per unit.

Financing Details

• Gross proceeds from the private placement are capped at $500,000.
• Unit composition includes one common share and one share purchase warrant per unit.
• Warrant terms allow holders to acquire an additional common share at $0.05 for a period of five years from issuance.
• Proceeds will be used to satisfy the acquisition agreement, pay transaction expenses, and fund general working capital.

Corporate Restructuring

• The company intends to change its name to Eryxion Resources Corp. concurrent with or prior to closing.
• Application submitted to TSX Venture Exchange (TSXV) to reactivate as a Tier 2 mining issuer.
• Current listing is on NEX; shares will be delisted from NEX and listed on TSXV facilities upon approval.
• No share consolidation associated with the name change.

Regulatory and Technical Steps

• An independent technical report in accordance with National Instrument 43-101 (NI 43-101) is being commissioned for the property.
• Final report to be filed on SEDAR+ upon completion of acquisition and exchange acceptance.
• Closing is subject to receipt of all necessary corporate and regulatory approvals, including TSXV and NEX exchanges.

Capital Adequacy Concerns

• The $500,000 raise is minimal for a mining exploration company; it barely covers the acquisition cost ($45k) and administrative expenses.
• Working capital remaining after closing will be extremely limited, suggesting an immediate need for further financing in the near future.
• Warrants are issued at-the-money (Issue price $0.05, Exercise price $0.05), creating significant potential dilution if exercised or if a follow-on raise is required soon.

Listing Upgrade Significance

• Moving from NEX to TSXV Tier 2 is a positive structural change that improves liquidity and visibility for institutional investors compared to the previous exchange.
• Reactivation as a Tier 2 mining issuer indicates management intends to pursue active exploration rather than maintaining a shell status, though this requires sustained capital.

Asset Quality Verification

• The acquisition price of $45k for over 2,000 hectares is low, suggesting speculative ground or early-stage interest without significant proven reserves yet.
• No historical news is provided to verify if previous projections materialized; the lack of NI 43-101 report prior to closing increases risk regarding asset quality.

Corporate Identity

• Current Name: Interconnect Ventures Corp.
• Proposed Name: Eryxion Resources Corp.
• Current Listing: NEX (National Exchange).
• Target Listing: TSX Venture Exchange (TSXV) Tier 2 Mining Issuer.

Flagship Project

• Location: Sayward, B.C., on northern Vancouver Island.
• Property Details: Four mineral claims totaling 2,169.94 hectares located approximately 16 km southeast of Sayward.
• Ownership Status: 100% legal and beneficial interest acquired free and clear of encumbrances.
• Vendor: Mammoth Geological Ltd. and R. Timothy Henneberry (arm's-length parties).

Development Stage

• Exploration Phase: Early stage; acquisition of claims followed by technical reporting.
• No drilling results or resource estimates are currently disclosed in the provided news items.