Electric Metals signs deal to sell Nevada silver assets

Executive Summary

• Electric Metals (USA) Ltd. has entered into a definitive agreement to sell its non-core Nevada silver assets (Corcoran and Belmont properties) to Ameerex Corporation for total consideration of $3.5 million USD.
• The transaction is part of a strategic shift to focus on the company's core manganese projects, specifically the North Star manganese project in Minnesota.
• The company has already received an initial payment of $300,000 USD, with the remaining balance payable in staged installments over 180 days.

Key Details

• Transaction Structure: Definitive purchase and sale agreement effective January 30, 2026.
• Seller: Electric Metals (USA) Ltd.
• Buyer: Ameerex Corporation (arm's-length entity based in Georgia, USA).
• Assets Sold: Wholly owned subsidiaries North American Silver Corp. and Centennial Mining, including:
  • Corcoran silver-gold project (advanced exploration-stage, NI 43-101 technical report exists).
  • Belmont silver project (historically significant, minimal modern exploration).
  • Unpatented federal lode mining claims and lease purchase options on patented claims in Nye County, Nevada.
• Total Consideration: $3.5 million USD.
• Payment Schedule:
  • $300,000 USD received upon execution (Jan 30, 2026).
  • $1.1 million USD payable 90 days after execution.
  • $2.1 million USD payable 180 days after execution.
• Royalty Retention: Electric Metals retains a 2.5% Net Smelter Return (NSR) royalty on production from both properties, subject to a 3.0% total royalty cap.
• Royalty Repurchase Option: Ameerex may repurchase the combined NSR royalties for $500,000 USD on or before the final payment, or thereafter at $1 million USD per 0.5% royalty interest.
• Finder’s Fee: Potential fee of 3% of transaction value ($3.5 million USD), less $90,000 USD, subject to TSX Venture Exchange acceptance.
• Strategic Context: Proceeds and management focus are directed toward the North Star manganese project.
• North Star Manganese Project PEA Metrics (Effective Aug 15, 2025):
  • After-tax Net Present Value (10% discount): $1.39 billion USD.
  • After-tax Internal Rate of Return: 43.5%.
  • Initial Capital Expenditure: $474.8 million USD.
• Regulatory Status: Disposition under TSX-V Policy 5.3; no shareholder approval required; not a fundamental change or change of control.

Notable Quotes

• "This transaction is a clear, disciplined capital allocation decision... By monetizing them now and taking advantage of the rise in precious metal prices, we are strengthening our balance sheet, simplifying the business, and directing capital and management focus toward advancing our manganese strategy." — Brian Savage, CEO, Electric Metals (USA) Ltd.