Critical One acquires the Howells Lake Antimony-Gold Project
Published by Will Owen,
Editor
Global Mining Review,
Critical One Energy Inc. (formerly Madison Metals Inc.) has entered into definitive purchase and sale agreements with Bounty Gold Corp. and a second agreement with several vendors to acquire 100% interest in a large, belt-scale antimony-gold project covering 13 990.90 ha. over 697 claims.
The Howells Lake Antimony Gold Project is located in the Howells Lake area in the Thunder Bay Mining Division of Ontario, Canada. The acquisition of the Howells Lake Project will be through cash payments and the issuance of common shares in the capital of the company.
The company signed the Bounty Gold Acquisition Agreement on 7 January 2025, and the Vendor Group Acquisition Agreement on 29 December 2024, respectively.
For consideration to acquire the portion of the Howells Lake Project owned by Bounty Gold, Critical One will pay Bounty Gold an initial cash payment of CAN$25 000 and issue to it 125 000 common shares. Bounty Gold will also be granted a 2% net smelter return (NSR) with a 1% NSR buyback right in favour of the company for CAN$1 million, at any time prior to commencement of commercial production in respect of the claims purchased under the Bounty Gold Acquisition Agreement.
To acquire the portion of the Howells Lake Project owned by the Vendor Group, Critical One will issue the Vendor Group: (i) 2 million common shares within 10 days of executing the Vendor Group Acquisition Agreement; (ii) 1.5 million common shares on the first anniversary of the effective date of the Vendor Group Acquisition Agreement; and (iii) 1 million common shares on the second anniversary of the effective date of the Vendor Group Acquisition Agreement. The common shares issued under the Initial Vendor Group Share Issuance and the First Vendor Group Share Issuance will be subject to an escrow agreement between the company and the Vendor Group. The company will also enter into consulting contracts for drilling, geophysical surveys and geological services with the Vendor Group. Critical One has granted the Vendor Group a 2% NSR, with the company retaining the option to repurchase 1% of the NSR for CAN$2 million. The Vendor Group will also be paid a cash payment of CAN$100 000 on or before 15 January 2025, to be used for initial exploration work, permits, mobilisation studies, and geological studies on the claims purchased under the Vendor Group Acquisition Agreement. Upon delivery of a National Instrument (NI) 43-101 technical report that includes NI 43-101 mineral resources on their respective properties and initial compliant resource estimate, Critical One will pay to the Vendor Group an additional case payment of CAN$1 million.
All common shares issued in connection with the acquisition of the Howells Lake Project shall be considered validly issued as fully paid and non-assessable.
No finders’ fees are payable in connection with either of the transactions.
Read the article online at: https://www.globalminingreview.com/mining/14012025/critical-one-acquires-the-howells-lake-antimony-gold-project/
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