Emergent Metals completes sale of 27 claims to Lahontan

Executive Summary

• Emergent Metals Corp. has completed the sale of its 27 unpatented lode mineral claims (the York claims) located on the New York Canyon property in Nevada to Lahontan Gold Corp.
• The transaction consideration includes $10,000 USD cash, a $50,000 USD promissory note, and the issuance of 2 million common shares of Lahontan Gold to Emergent’s U.S. subsidiary, Golden Arrow Mining Corp. (GAMC).
• As part of the deal, Lahontan granted Emergent a 1% Net Smelter Returns (NSR) royalty on the York claims, with buyout options available at $500,000 USD within three years or $1,000,000 USD between years three and seven.

Key Details

• Transaction Status: Completed sale of 27 unpatented lode mineral claims (York claims) to Lahontan Gold Corp. (TSX Venture: LG).
• Asset Location: New York Canyon property, Nevada; directly south of and abutting Lahontan’s Santa Fe property.
• Cash Consideration: $10,000 USD paid to Emergent’s U.S. subsidiary, Golden Arrow Mining Corp. (GAMC), upon signing the term sheet.
• Debt Instrument: Lahontan issued a $50,000 USD promissory note to GAMC upon signing and TSX Venture Exchange approval.
  • Interest Rate: 1% per month.
  • Maturity: Payable within six months of signing.
• Equity Consideration: Lahontan issued 2,000,000 common shares of Lahontan Gold to GAMC or its designee upon signing and exchange approval.
• Royalty Terms:
  • Lahontan granted GAMC a 1% NSR royalty on the York claims.
  • Buyout Option (Years 0-3): Lahontan may purchase the royalty for $500,000 USD.
  • Buyout Option (Years 3-7): Lahontan may purchase the royalty for $1,000,000 USD.
• Transfer Timeline: GAMC facilitates the transfer of claims to Lahontan within 30 days of signing, exchange approval, cash payment, share issuance, and note issuance.
• Regulatory Note: Transfer timing may be affected by the U.S. government shutdown impacting the Bureau of Land Management (BLM).
• Strategic Context: The sale allows Lahontan to expand its York resource southward. Emergent retains the remainder of the New York Canyon property, including Longshot Ridge, Copper Queen, Champion, Emma copper skarn/porphyry targets, and the Yorkie gold target.
• Related Activity: Lahontan holds a lease with an option to purchase on Emergent’s West Santa Fe property (a potential satellite deposit) and plans to drill there in late 2025.

Notable Quotes

• "Lahontan's Santa Fe property is a past-producing open-pit heap leach gold mine being fast-tracked back into production by Lahontan. It is one of the best near-term development gold projects in Nevada. The transaction allows Emergent to become a shareholder of Lahontan, and we believe these shares will have significant upside investment potential, as Lahontan advances Santa Fe towards production. Upside also exists, down the road, through the NSR or early buyout of the NSR. Emergent will retain the remainder of the New York Canyon property, hosting the Longshot Ridge, Copper Queen, Champion, and Emma copper skarn and porphyry targets, and the Yorkie gold target." — David Watkinson, President and CEO, Emergent Metals Corp.