Azarga Metals Corp. has entered into a term sheet to acquire Marg Copperrich VMS project in Central Yukon from Golden Predator Mining Corp. for CAD 1.6 million.

Azarga Metals Corp. (TSXV:AZR) has entered into a term sheet to acquire Marg Copperrich VMS project in Central Yukon from Golden Predator Mining Corp. (TSXV:GPY) for CAD 1.6 million on July 14, 2021.

As of November 9, 2021 Azarga Metals signed a definitive agreement to acquire Marg Copperrich VMS project in Central Yukon from Golden Predator Mining Corp. A non-refundable Exclusivity Fee of CAD 0.05 million payable within 5 days of signing for a 60-day exclusivity period to enable Azarga Metals to conduct its due diligence investigations. On completion of the transaction, fully paid ordinary shares in Azarga Metals, to the value of CAD 0.7 million (based on the volume-weighted average trading price of Azarga Metals shares for the 20 trading days prior to any public announcement related to the transaction).

The shares may be subject to an involuntary escrow period as determined by the relevant stock exchange and regulatory bodies. If the escrow period is longer than 6 months, a further cash payment of CAD 1 million will be payable to Golden Predator on signing; and a further cash payment of CAD 0.2 million at the one-year anniversary date for the completion of the transaction; and a further cash payment of CAD 0.35 million at the two-year anniversary date for the completion of the transaction; and a milestone payment of CAD 3 million (in cash or shares at Golden Predators discretion) upon final decision to mine by Azarga Metals at the Marg Project. On and from completion of the transaction, Golden Predator will be entitled to a 1% NSR royalty of all metals extracted from the Project.

The transaction is subject to due diligence, approval by the TSX Venture Exchange. The conditions also include receipt of appropriate consent under the existing Baker Steel Resources Trust convertible loan.