Silicon Metals to acquire Crystal Hills project

Executive Summary

• Silicon Metals Corp. has entered into a definitive share purchase agreement to acquire 100% of the issued and outstanding shares of 1504947 B.C. Ltd., the owner of the Crystal Hills project in Ontario.
• The acquisition consideration consists of 2,000,000 common shares of Silicon Metals (deemed price of $0.065 per share) and $85,000 in cash.
• The Crystal Hills project comprises 18 mineral claims totaling approximately 400 hectares, featuring a high-purity crystalline quartzite formation with historical sampling indicating over 98% SiO2 content.

Key Details

• Transaction Structure: Acquisition of 100% interest in 1504947 B.C. Ltd.
• Consideration:
  • Equity: 2,000,000 common shares of Silicon Metals Corp.
  • Deemed Price: $0.065 per Silicon share.
  • Cash: $85,000 aggregate payment to target shareholders.
• Post-Closing Share Count: 49,716,690 shares outstanding.
• Asset Details (Crystal Hills Project):
  • Location: Clarkson township, Ontario, Canada (approx. 40 km north of North Bay).
  • Size: 18 cells totaling approximately 400 hectares.
  • Geology: High-purity crystalline quartzite formation expressed as topographic hills; approx. 3 km strike length within claim boundaries.
  • Quality: Historical sampling indicates quartzite material is over 98% SiO2.
  • Infrastructure: Easily accessible with established roads, adjacent to highway, and nearby rail services.
• Regulatory/Compliance:
  • Transaction subject to approval by the Canadian Securities Exchange (CSE).
  • Shares issued bear legends reflecting contractual resale restrictions over a 24-month period.
  • Related party transaction involving director/shareholder Raymond Wladichuk; exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 (MI 61-101) as consideration does not exceed 25% of market capitalization.
  • Technical information reviewed and approved by Raymond Wladichuk, PGeo (Qualified Person under NI 43-101).

Notable Quotes

• "Our team is extremely excited with this addition to the company's portfolio expanding our footprint of high-quality silica and potentially high grade, in Ontario, which we believe positions the company very well as the mining sector, including critical metals, begins to see more attention and positive investor sentiment." — Morgan Good, CEO