SURGE BATTERY METALS INC. ("NILI")
BULLETIN TYPE: Property-Asset or Share Purchase Agreement
BULLETIN DATE: October 23, 2023
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing documentation pertaining to a purchase agreement for mineral interest dated effective September 14, 2023, and its first addendum dated effective September 25, 2023, (collectively, the "Agreement") between three arm's length vendors (the "Vendors"), Surge Battery Metals USA Inc. (the "Purchaser"), a wholly owned subsidiary of Surge Battery Metals Inc. (the "Company"), and the Company, whereby the Purchaser will acquire from the Vendors a twenty-one point two five (21.25%) percent interest in the sub-surface (mineral estate) rights on certain private lands totaling approximately 880 acres located in Elko County, Nevada. The consideration is US$50,000 in cash and the issuance of 1,250,000 shares of the Company to the Vendors. Furthermore, the Purchaser will pay an additional US$150,000 to the Vendors should it enter into an agreement to purchase surface rights of the same private lands with the owner of those surface rights.
The Purchaser grants the Vendors a net revenue royalty of 3% of net revenues from the production of the acquired interest (the "Royalty"). However, the Royalty is not payable until a surface rights agreement is entered into with the owner of the surface rights to the private lands. The Purchaser has the right for five years to purchase one-half of the Royalty, thereby reducing it to 1.5%, by paying the Vendors a total of US$750,000.
All cash payments, share issuances, and Royalty payments will be distributed to the Vendors on a pro-rata basis.
For further details, please refer to the Company's news release dated October 3, 2023.
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