MUZHU MINING LTD. First Energy Metals Limited (CNSX:FE) signed a non-binding letter of intent to acquire Muzhu Mining Ltd. for CAD 0.81 million on September 22, 2019. First Energy Metals Limited will issue 9 million common shares which may be subject to escrow provisions pursuant to Canadian Securities Exchange policy. The First Energy Metals Limited shares shall be distributed pro-rata to the shareholders of Muzhu Mining Ltd. such that each Muzhu Mining Ltd. shareholder will receive their pro-rata shares of First Energy Metals Limited.
Upon successful completion of the transaction, First Energy Metals Limited will appoint one additional member to its Board at the discretion of Muzhu Mining Ltd. First Energy Metals Limited appointed Craig Alford to its Board of Directors. Concurrently, Muzaffar Sultan resigned from the Board. First Energy Metals Limited added Anthony Tam to its advisory board.
From the date of signing the Letter Of Intent both parties will be entitled up to 10 business days for Due Diligence. Closing of the transaction is subject to obtaining all required approvals, including the Canadian Securities Exchange and shareholder approval if required. Transaction is also subject to completion of a debt or equity financing.
