Emergent converts lease to ownership of Nevada claims

Executive Summary

• Emergent Metals Corp. has consolidated 100% ownership of the Golden Arrow property in Nevada by converting a lease into ownership of 185 mineral claims, subject to a reserved royalty retained by Triple Flag Precious Metals.
• To settle past-due minimum royalty payments, Emergent issued 1,767,565 common shares to Maverix Canada (a subsidiary of Triple Flag) in a debt-to-equity conversion valued at $150,000 USD.
• The company also entered into a 12-month investor relations and digital marketing agreement with Plutus Invest & Consulting GmbH for a maximum budget of €250,000, subject to TSX Venture Exchange approval.

Key Details

• Asset Consolidation: Golden Arrow Mining Corp. (GAMC), a subsidiary of Emergent, acquired ownership of 185 unpatented mineral claims (the Baughman claims) from Maverix Metals (Nevada) Inc.
• Royalty Terms: Maverix NV retains a reserved royalty on the conveyed property and 292 additional claims in the Area of Influence (AOI). This royalty consists of:
  • An Advance Minimum Royalty (AMR) of $25,000 USD per year.
  • A 3% Net Smelter Return (NSR) royalty upon reaching the production stage.
  • GAMC has the option to acquire 1% of the NSR royalty at any time for $1 million USD.
• Debt Conversion: Emergent issued 1,767,565 common shares to Maverix Canada to satisfy past-due and unpaid AMR payments.
  • Deemed Price: 11.625 cents per share.
  • Total Value: $150,000 USD (converted to CAD at an exchange rate of 73 U.S. cents per $1).
  • Hold Period: The shares are subject to a standard hold period of four months and one day under Canadian securities laws.
• Investor Relations Agreement: Emergent engaged Plutus Invest & Consulting GmbH for European-focused investor awareness and digital marketing services.
  • Term: 12 months from the date of TSX Venture Exchange acceptance.
  • Budget: Maximum aggregate budget of €250,000, covering fees and third-party media/advertising costs.
  • Payment Terms: No compensation payable until exchange acceptance; no securities issued as compensation; compensation is not contingent on trading volume or share price.
  • Parties: Plutus and its principal, Marco Messina, are at arm's length from Emergent. Orange Unicorn Ltd. acts solely as a technical publisher of record and receives no compensation.
• Regulatory Status: Both the debt conversion agreement and the investor relations agreement are subject to approval/acceptance by the TSX Venture Exchange.

Notable Quotes

• "This transaction allows Emergent to consolidate 100-per-cent ownership in the 494 unpatented and 17 patented claims that make up the Golden Arrow property, subject to underlying royalties. Triple Flag, as a royalty company, will retain a royalty interest in certain claims." — David Watkinson, President and CEO