Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has entered into a definitive arrangement agreement to acquire all outstanding shares of Emergent Metals Corp., the company announced in a press release. Under the terms of the transaction, Emergent shareholders will receive one Lahontan share for every 3.21 Emergent shares, representing implied consideration of approximately $0.115 per Emergent share. This implies a 47.8% premium to Emergent's 30-day volume-weighted average price. Upon completion, existing Lahontan and Emergent shareholders are expected to own approximately 95.3% and 4.7% of the combined company, respectively.
The acquisition will give Lahontan 100% ownership of the West Santa Fe project, eliminate royalties on West Santa Fe and the York claims at the Santa Fe Mine, and add the adjoining New York Canyon project. This will bring Lahontan's Walker Lane land package to more than 93 square kilometers. Additionally, Lahontan will acquire a US$3.5 million promissory note from Fairchild Gold Corp., 12.5 million Fairchild shares, a 0.5% net smelter return royalty on the Golden Arrow property, and additional properties and royalties in Quebec and Nevada.
Completion of the transaction remains subject to Emergent shareholder approval, court and regulatory approvals, and other customary closing conditions. The full press release can be viewed at https://ibn.fm/rcxbz.
Lahontan Gold Corp. is a Canadian mine development and mineral exploration company that holds, through its US subsidiaries, four top-tier gold and silver exploration properties in the Walker Lane of mining-friendly Nevada. Lahontan's flagship property, the 26.4 km2 Santa Fe Mine project, had past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines utilizing heap-leach processing. The Santa Fe Mine has a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 oz Au Eq (48,393,000 tonnes grading 0.92 g/t Au and 7.18 g/t Ag, together grading 0.99 g/t Au Eq) and an Inferred Mineral Resource of 411,000 oz Au Eq (16,760,000 tonnes grading 0.74 g/t Au and 3.25 g/t Ag, together grading 0.76 g/t Au Eq), all pit constrained. The company plans to continue advancing the Santa Fe Mine project towards production, update the Santa Fe Preliminary Economic Assessment, and drill test its satellite West Santa Fe project during 2025.
The technical content of this news release and the company's technical disclosure has been reviewed and approved by Michael Lindholm, CPG, Independent Consulting Geologist to Lahontan Gold Corp., who is a Qualified Person as defined in National Instrument 43-101 — Standards of Disclosure for Mineral Projects. Mr. Lindholm was not an author for the Technical Report and does not take responsibility for the resource calculation but can confirm that the grade and ounces in this press release are the same as those given in the Technical Report. For more information, please visit the company's website: www.lahontangoldcorp.com.
The latest news and updates relating to LGCXF are available in the company's newsroom at http://ibn.fm/LGCXF.
