Emergent Metals Corp. To Sell Its Golden Arrow Property To Fairchild Gold

Core Viewpoint - Emergent Metals Corp. has signed a Memorandum of Understanding to sell its Golden Arrow Property to Fairchild Gold, which includes cash payments, common shares, a senior secured note, and a royalty interest, aiming to monetize the asset in various timeframes [1][6]. Transaction Details - The transaction involves a non-refundable deposit of US$250,000 upon signing the MOU and an additional US$350,000 upon approval by the Toronto Venture Exchange [3]. - Fairchild will issue 12,500,000 common shares to Emergent, ensuring Emergent's ownership remains below 9.9% of Fairchild's outstanding shares [2]. - A Senior Secured Note will be issued with a principal amount of US$3,500,000, a term of five years, and an interest rate of 8.5% per annum, payable semi-annually [4]. Royalty and Additional Terms - Emergent retains a 0.5% net smelter return royalty on the Golden Arrow Property, with options for Fairchild to acquire the royalty at US$1,000,000 before the fourth anniversary or US$1,500,000 between the fourth and seventh anniversaries [5]. - Fairchild will also be responsible for various costs related to the property after the Definitive Agreement is signed, including maintenance fees and property taxes [5]. Strategic Implications - The transaction is seen as a way for Emergent to receive immediate cash and shares, ongoing interest payments, and potential long-term benefits from the royalty [6]. - Emergent's management believes that Fairchild is well-positioned to advance the Golden Arrow Property towards production, capitalizing on favorable market conditions for metals [6].