Core Viewpoint - Maxim Power Corp. has successfully completed the sale of its wholly-owned subsidiaries Summit Coal Limited Partnership and Summit Coal Inc. to Valory Resources Inc. for a total of $14.2 million, which includes $10.2 million in cash and $4.0 million in equity securities [1][2] Group 1: Sale Details - The sale price consists of $10.2 million in cash and a $4.0 million Convertible Note, which is a 15% interest-bearing note convertible into Valory common shares at a 30% discount during a convertible event [1][2] - The sale included $2.2 million of restricted cash, resulting in net cash proceeds to Maxim of $8.0 million [2] Group 2: Royalty Agreement - Maxim will receive a 3% royalty on any raw coal produced from the coal leases owned by Summit, including volumes from Summit's Mine 14 project, calculated using a Premium Low Vol Hard Coking Coal benchmark [3] - The timing and amount of royalty payments depend on the commencement of production, which is uncertain [3] Group 3: Ground Lease Agreement - Maxim, through its subsidiary Milner Power Inc., has entered into a twelve-year ground lease with a nominee of Valory for the construction and operation of a coal processing facility [4] - The lease includes a fixed annual payment of $2.1 million and a variable throughput payment, which could be substantial if coal is processed, but there is no certainty regarding the construction timeline [4] - The first-year pro-rated fixed payment of approximately $1.4 million was received on the lease commencement date [4] Group 4: Company Overview - Maxim Power Corp. is based in Calgary, Alberta, and is one of Canada's largest independent power producers, focusing on power projects in Alberta [5] - The company's core asset is the 300 MW H.R. Milner Plant, which is a state-of-the-art combined cycle gas-fired power plant that began operations in Q4 2023 [5] - Maxim is exploring additional development options in Alberta, including gas-fired generation and wind power projects [5]