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Forge Resources Corp (CSE: FRG) (OTCQB: FRGGF) has announced an extension of the exclusivity period for its non-binding letter of intent (LOI) with Aion Mining Corp until February 7, 2025. The transaction involves FRG acquiring additional Aion shares for $5,000,000, consisting of $4,000,000 in cash and $1,000,000 in FRG common shares at closing price.
The deal includes anti-dilution rights for 12 months post-closing and a 4-year right of first refusal on Aion’s equity financings, allowing FRG to maintain a 60% controlling position in Aion’s voting securities. The transaction remains subject to due diligence, necessary approvals, and a definitive agreement. Notably, Aion is a non-arm’s length party due to shared director Cole McClay and officer Camilo Cordovez.
Forge Resources Corp (CSE: FRG) (OTCQB: FRGGF) ha annunciato un’estensione del periodo di esclusività per la sua lettera di intenti non vincolante (LOI) con Aion Mining Corp fino al 7 febbraio 2025. La transazione prevede che FRG acquisisca azioni aggiuntive di Aion per 5.000.000 di dollari, di cui 4.000.000 di dollari in contanti e 1.000.000 di dollari in azioni ordinarie FRG al prezzo di chiusura.
Il contratto include diritti anti-diluizione per 12 mesi dopo la chiusura e un diritto di prelazione di 4 anni sulle finanziamenti azionari di Aion, consentendo a FRG di mantenere una posizione di controllo del 60% nei titoli di voto di Aion. La transazione è ancora soggetta a due diligence, approvazioni necessarie e un accordo definitivo. È importante notare che Aion è una parte non indipendente a causa della presenza del direttore comune Cole McClay e dell’ufficiale Camilo Cordovez.
Forge Resources Corp (CSE: FRG) (OTCQB: FRGGF) ha anunciado una extensión del período de exclusividad para su carta de intención no vinculante (LOI) con Aion Mining Corp hasta el 7 de febrero de 2025. La transacción implica que FRG adquiera acciones adicionales de Aion por 5,000,000 de dólares, de los cuales 4,000,000 de dólares son en efectivo y 1,000,000 de dólares en acciones comunes de FRG al precio de cierre.
El acuerdo incluye derechos de anti-dilución durante 12 meses después del cierre y un derecho de tanteo de 4 años sobre las financiaciones de capital de Aion, permitiendo que FRG mantenga una posición de control del 60% en los valores de voto de Aion. La transacción sigue sujeta a la debida diligencia, aprobaciones necesarias y un acuerdo definitivo. Cabe destacar que Aion es una parte no independiente debido a los directores compartidos Cole McClay y el oficial Camilo Cordovez.
Forge Resources Corp (CSE: FRG) (OTCQB: FRGGF)는 Aion Mining Corp와의 비구속 의향서(LOI)의 독점성 기간을 2025년 2월 7일까지 연장한다고 발표했습니다. 이 거래는 FRG가 Aion의 추가 주식을 5,000,000달러에 인수하는 내용으로, 그중 4,000,000달러는 현금이고 1,000,000달러는 FRG의 일반주식으로 마감 가격에 따라 진행됩니다.
거래에는 종결 후 12개월 동안의 희석 방지 권리 및 Aion 자본 조달에 대한 4년간의 우선 구매권이 포함되어 있어 FRG가 Aion의 의결권 증권에서 60%의 지배적인 지위를 유지할 수 있도록 합니다. 이 거래는 여전히 실사, 필요한 승인 및 최종 계약의 대상입니다. 특히 Aion은 공동 이사인 Cole McClay와 임원 Camilo Cordovez로 인해 비독립적 당사자입니다.
Forge Resources Corp (CSE: FRG) (OTCQB: FRGGF) a annoncé une prolongation de la période d’exclusivité pour sa lettre d’intention non contraignante (LOI) avec Aion Mining Corp jusqu’au 7 février 2025. La transaction implique que FRG acquiert des actions supplémentaires d’Aion pour 5 000 000 dollars, dont 4 000 000 dollars en espèces et 1 000 000 dollars en actions ordinaires de FRG au prix de clôture.
L’accord comprend des droits anti-dilution pendant 12 mois après la clôture et un droit de préemption de 4 ans sur les financements en capital d’Aion, permettant à FRG de maintenir une position de contrôle de 60 % dans les titres de vote d’Aion. La transaction est encore soumise à la diligence raisonnable, aux approbations nécessaires et à un accord définitif. Il est à noter qu’Aion est une partie non indépendante en raison des administrateurs partagés Cole McClay et de l’agent Camilo Cordovez.
Forge Resources Corp (CSE: FRG) (OTCQB: FRGGF) hat die Verlängerung der Exklusivitätsfrist für sein unverbindliches Letter of Intent (LOI) mit Aion Mining Corp bis zum 7. Februar 2025 angekündigt. Die Transaktion beinhaltet den Erwerb zusätzlicher Aion-Aktien im Wert von 5.000.000 US-Dollar, die sich aus 4.000.000 US-Dollar in Bargeld und 1.000.000 US-Dollar in FRG-Stammaktien zum Schlusskurs zusammensetzen.
Der Deal beinhaltet Dilutionsschutzrechte für 12 Monate nach dem Abschluss sowie ein 4-jähriges Vorkaufsrecht auf Aions Eigenkapitalfinanzierungen, das es FRG erlaubt, eine kontrollierende Position von 60% bei Aions stimmberechtigten Wertpapieren zu behalten. Die Transaktion unterliegt weiterhin der Due Diligence, notwendigen Genehmigungen und einem endgültigen Vertrag. Bemerkenswerterweise ist Aion eine nicht unabhängige Partei aufgrund der gemeinsamen Direktoren Cole McClay und dem Beamten Camilo Cordovez.
Positive
- Potential acquisition of controlling stake (60%) in Aion Mining
- Anti-dilution rights for 12 months and 4-year right of first refusal on equity financings
Negative
- Significant cash outlay of $4,000,000 required
- Share dilution through $1,000,000 in common shares issuance
- Non-arm’s length transaction poses potential conflict of interest
Vancouver, British Columbia–(Newsfile Corp. – January 17, 2025) – Forge Resources Corp. (CSE: FRG) (OTCQB: FRGGF) (FSE: 5YZ) (“FRG” or the “Company“) is pleased to announce the extension to the exclusivity period of the non-binding letter of intent (the “LOI“) with Aion Mining Corp. (“Aion“) to February 7, 2025.
As previously stated in the news release dated September 17, 2024 – In consideration of additional shares of Aion, the Company will pay $5,000,000, comprised of the following:
- $4,000,000 in cash on closing; and
- $1,000,000 in common shares of the Company at a price per share equal to the closing of the share price of the Company on the closing date of the Proposed Transaction, subject to CSE policies.
The Company will also be granted anti-dilution rights by Aion for a 12-month basis post-closing, and a subsequent right of first refusal on all equity financings by Aion for the ensuing 4-year period, so as to allow the Company to maintain a post-closing control position of 60% in Aion’s voting securities on a fully-diluted basis.
Completion of the transaction is subject to customary conditions and any other conditions agreed to by the parties in a definitive share purchase agreement (the “Definitive Agreement”) including: receipt of all necessary approvals and consents on terms satisfactory to the parties, and completion of a due diligence investigation into Aion by the Company and its representatives.
Aion is a non-arm’s length party to the Company by reason of sharing a common director, Cole McClay and a common officer, Camilo Cordovez. The terms of the LOI were reviewed and approved by a committee of the Company’s independent directors.
There are no assurances or guarantees that the proposed transaction will be completed, whether on the terms and conditions described above or at all. The Company will provide further updates as they become available.
About Forge Resources Corp.
Forge Resources Corp. is a Canadian-listed junior exploration company focused on exploring and advancing the Alotta project, a prospective porphyry copper-gold-molybdenum project located 50 km south-east of the Casino porphyry deposit in the unglaciated portion of the Dawson Range porphyry/epithermal belt in the Yukon Territory of Canada. The Company holds a 40% interest, with an LOI in place to acquire up to 60% interest in Aion Mining Corp., a company that is developing the fully permitted La Estrella coal project in Santander, Colombia. The project contains eight known seams of metallurgical and thermal coal.
Forward Looking Statements
Certain of the statements made and information contained herein may contain forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information concerning the Company’s intentions with respect to the development of its mineral properties. Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies). Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information. We seek safe harbor.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237707
FAQ
What is the new deadline for Forge Resources (FRGGF) LOI with Aion Mining?
The exclusivity period for the LOI has been extended to February 7, 2025.
How much is Forge Resources (FRGGF) paying for additional Aion Mining shares?
Forge Resources is paying $5,000,000 total, comprising $4,000,000 in cash and $1,000,000 in common shares.
What percentage stake will FRGGF maintain in Aion Mining after the transaction?
Forge Resources will maintain a 60% controlling position in Aion’s voting securities on a fully-diluted basis.
What special rights does FRGGF receive in the Aion Mining deal?
FRGGF receives 12-month anti-dilution rights and a 4-year right of first refusal on all Aion equity financings.
Why is the FRGGF-Aion Mining transaction considered non-arm’s length?
The transaction is non-arm’s length because both companies share a common director (Cole McClay) and officer (Camilo Cordovez).
