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Be the first with the news that moves the market- Bolt Metals (BOLT) has signed a letter of intent to earn a 100 per cent interest in the Cherry Creek property in Nevada, USA
- The company intends to acquire 1261799 BC, a privately held company which currently has an option to acquire the project, by issuing 10 million common shares
- Following this, Bolt may acquire the project for a total of C$2.2 million and 1.05 million shares
- The transaction is expected to close upon the completion of due diligence and the receipt of regulatory and shareholder approval
- Bolt Metals (BOLT) is currently down 4.35 per cent and is trading at 11 cents per share
Bolt Metals (BOLT) has signed a letter of intent to earn a 100 per cent interest in the Cherry Creek property in Nevada, USA.
Located in White Pine County, the property consists of 24 contiguous patented mineral claims and includes the past-producing Mary Ann base metal, silver and gold mine. It sits within the Pequop mining district, which also hosts the Long Canyon and West Pequop gold deposits.
Bolt Metals intends to acquire the Cherry Creek property through its acquisition of 1261799 BC, a private company which currently holds the option agreement.
As consideration for the deal, Bolt Metals will acquire the company through the issuance of 10 million common shares, which will be made following the completion of Bolt’s proposed share capital consolidation.
The precise exchange ratio will be determined upon a review of the two companies’ capital structures, but will be based on an anticipated one-for-one basis.
Upon completion of the transaction, Bolt will have the right to fully acquire the Cherry Creek property by paying a total of C$200,000 and issuing 1.05 million common shares to the optionor, and by making a final exercise payment of C$2 million by August 31, 2030.
While the deal remains subject to a number of conditions, it is expected to close upon the completion of due diligence work and the receipt of regulatory, shareholder and third-party approvals.
A finder’s fee of 10 per cent is also expected to be paid to certain parties in exchange for their services.
Bolt Metals (BOLT) is currently down 4.35 per cent and is trading at 11 cents per share at 11:31am EDT.
