Diagnamed enters deal to buy Colchester East project

Executive Summary

• Diagnamed Holdings Corp. has entered into an acquisition agreement to acquire the Colchester East natural hydrogen project in Nova Scotia, consisting of 30 licences and 2,104 claims.
• The acquisition positions Diagnamed within a high-potential natural hydrogen corridor, adjacent to major industry players like Koloma and Rio Tinto, and complements its existing land position in Ontario.
• The transaction involves a $10,000 cash payment, the issuance of 10 million common shares, and a 2.0% royalty retained by sellers, with an option for Diagnamed to repurchase 50% of the royalty for $2 million.

Key Details

• Target Asset: Colchester East natural hydrogen project in Nova Scotia.
• Asset Composition: 30 licences totalling 2,104 claims.
• Strategic Context: Located in Canada's most active natural hydrogen corridor; adjacent to properties held by Quebec Innovative Materials Corp. (north), Koloma (north), and Rio Tinto (southwest).
• Geological Indicators: Licences exhibit fault-controlled migration pathways, caprock configurations, and proven hydrogen-bearing stratigraphy.
• Consideration:
  • Non-refundable cash payment of $10,000.
  • Issuance of 10 million common shares to sellers.
• Royalty Terms: Sellers retain a 2.0% royalty on hydrogen or mineral revenues.
• Royalty Repurchase Option: Diagnamed may repurchase 50% of the sellers' royalty for $2 million.
• Regulatory/Listing Status: Transaction subject to approval from the Canadian Securities Exchange (CSE).
• Hold Period: All securities issued are subject to a statutory four-month-and-one-day hold period.
• Counterparty Status: Sellers are arm's-length to the company.
• Corporate Governance Update: Fabrice Consalvo has joined the board of directors, bringing over 30 years of global energy sector experience.

Notable Quotes

• "This acquisition represents a strategic opportunity and positions Diagnamed among the largest natural hydrogen claim holders in Canada. With major industry groups like Koloma and Rio Tinto now aggressively securing ground in the area, it's clear that this region is emerging as one of North America's most competitive natural hydrogen frontiers." — John Karagiannidis, CEO