Electric Metals (USA) Limited Announces Agreement to Sell Non-Core Nevada Silver Assets

Executive Summary

• Electric Metals (USA) Limited entered a definitive purchase‑and‑sale agreement to sell its Nevada silver assets (North American Silver Corp. and Centennial Mining) to Ameerex Corporation for total consideration of US$3.5 million.
• The transaction is structured with staged cash payments ($300k received, $1.1 M due 90 days after execution, $2.1 M due 180 days after execution) and includes a retained 2.5% net smelter return royalty (capped at 3%).
• Proceeds will be used to strengthen the balance sheet and fund the company’s core North Star Manganese Project, aligning with its strategic focus on domestic manganese production.

Key Details

• Initial Payment Received: US$300,000 paid by Ameerex on execution of the Agreement (January 30 2026).
• Total Purchase Price: US$3.5 million for 100% of the issued and outstanding shares of North American Silver Corp. and Centennial Mining.
• Payment Schedule:
• $300,000 – upon execution (already received)
• $1.1 million – payable 90 days after execution
• $2.1 million – payable 180 days after execution
• Royalty Retention: 2.5% net smelter return on production from Corcoran and Belmont properties, subject to a total royalty cap of 3% (including existing third‑party royalties).
• Royalty Repurchase Option: Ameerex may repurchase the NSR royalty for US$500,000 before the final payment or at US$1,000,000 per each 0.5% interest thereafter.
• Finder’s Fee: Up to 3% of the transaction value less $90,000, payable subject to TSX Venture Exchange acceptance.
• Strategic Rationale (CEO Quote): “By monetizing non‑core Nevada silver assets we are strengthening our balance sheet, simplifying the business, and directing capital toward advancing our manganese strategy while retaining meaningful royalty upside.” – Brian Savage, CEO.
• Regulatory Status: Transaction qualifies as a disposition of non‑core assets under TSX Venture Exchange Policy 5.3; no shareholder approval required; not a change of control.
• Related Disclosure: The company filed a NI 43‑101 Preliminary Economic Assessment for the North Star Manganese Project (NPV US$1.39 B, IRR 43.5%, initial capex US$474.8 M).

Notable Quotes

“This transaction is a clear, disciplined capital allocation decision… we are strengthening our balance sheet, simplifying the business, and directing capital and management focus toward advancing our manganese strategy.” – Brian Savage, Chief Executive Officer

All forward‑looking statements are subject to risks and uncertainties described in the full press release.