TORONTO–(BUSINESS WIRE)–Aquila Resources Inc. (TSX: AQA, OTCQB: AQARF) (�Aquila or the Company) is pleased to announce that it has closed the previously announced transaction (the Transaction) to sell its Bend and Reef properties in Wisconsin to Green Light Metals Inc. (GL). All dollar amounts are reported in Canadian dollars.
Total consideration of $7,000,000 payable to Aquila consists of:
If the Promissory Note becomes due and payable on a Go-Public Transaction, then the Promissory Note shall be satisfied by way of:
If GL does not complete a Go-Public Transaction prior to the Maturity Date, then the Promissory Note shall be satisfied by way of the issuance of that number of GL shares equal to $4.9 million divided by the price per share at which GL issued shares in its most recently completed financing prior to the Maturity Date.
In connection with the Transaction, GL and Aquila also entered into an investor rights agreement pursuant to which, among other things, Aquila received the right to participate in future equity financings completed by GL as well as nomination rights in respect of one member of GLs board of directors, in each case subject to Aquila continuing to maintain a specified ongoing ownership interest in GL.
Barry Hildred, Aquilas Executive Chair, is an investor in GL and Chair of the GL board of directors. As such, Mr. Hildred did not participate in the Transaction on behalf of Aquila and recused himself from voting on the Transaction as a member of Aquilas board of directors.
ABOUT AQUILA
Aquila Resources Inc. (TSX: AQA, OTCQB: AQARF) is a development-stage company focused on high grade polymetallic projects in the Upper Midwest, USA. Aquilas experienced management team is advancing pre-construction activities for its flagship 100%?owned gold and zinc-rich Back Forty Project in Michigan.
The Back Forty Project is a volcanogenic massive sulfide deposit with open pit and underground potential located along the mineral-rich Penokean Volcanic Belt in Michigans Upper Peninsula. Back Forty contains approximately 1.1 million ounces of gold and 1.2 billion pounds of zinc in the Measured & Indicated Mineral Resource classifications, with additional exploration upside. An optimized Feasibility Study for the Project is underway.
Additional disclosure of Aquilas financial statements, technical reports, material change reports, news releases and other information can be obtained at www.aquilaresources.com or on SEDAR at www.sedar.com.
Cautionary statement regarding forward-looking information
This press release may contain certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as plans, expects or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: risks with respect to the COVID-19 pandemic; and other related risks and uncertainties, including, but not limited to, risks and uncertainties disclosed in Aquilas filings on its website at www.aquilaresources.com and on SEDAR at www.sedar.com. Aquila undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents Aquilas best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Furthermore, mineral resources that are not mineral reserves do not have demonstrated economic viability.
Contacts
Guy Le Bel, President & CEO
Tel: 450.582.6789
glebel@aquilaresources.com
David Carew, VP Corporate Development & Investor Relations
Tel: 647.943.5677
dcarew@aquilaresources.com
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