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 15, 2023 (the "Agreement") between an Idaho general partnership (the "Seller"), 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 three point seven five (3.75%) 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$8,250 in cash and the issuance of 300,000 shares of the Company to the two partners of the Seller. Furthermore, the Purchaser will pay an additional US$24,750 to the two partners of the Seller 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 Seller a revenue royalty of 3% of gross 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 Seller a total of US$225,000. The registration of the transfer of the acquired interest is contingent upon finalizing the royalty agreement. Any amendments to the current unexecuted royalty agreement may be subject to prior Exchange approval in accordance with Exchange policies.
All cash payments, share issuances, and Royalty payments will be distributed to the two partners of the Seller on a pro-rata basis.
For further details, please refer to the Company's news release dated October 3, 2023.
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