Lahontan Gold signs agreement to acquire Emergent Metals

Lahontan Gold has reached an agreement to acquire all shares of Emergent Metals, bolstering its ownership of Nevada's West Santa Fe project and increasing its landholdings in the US. Shareholders of Emergent Metals will receive one share of Lahontan Gold for every 3.21 shares they own, with an estimated value of C$0.115 per Emergent share.

Following the completion of the deal, Lahontan Gold is expected to hold approximately 95.3% of the combined company, while Emergent shareholders will own the remaining 4.7%. This acquisition eliminates roughly C$2.39 million in future payments that would have been required to purchase the remaining interest in the West Santa Fe project.

Additionally, Lahontan Gold will no longer be obligated to pay a 1% net smelter return (NSR) royalty to Emergent on the West Santa Fe project and the recently acquired 27 York claims at the Santa Fe Mine. The acquisition also includes the New York Canyon project, a location in southern Nevada that features unpatented mining claims and is believed to contain precious and base metal mineralization.

The deal involves the assumption of a C$3.5 million promissory note issued by Fairchild Gold following the sale of the Golden Arrow property. Upon completion, Lahontan Gold will own 12.5 million Fairchild shares, a 0.5% NSR royalty on Golden Arrow, properties and royalties in Quebec, and a package of leased claims in Nevada. Completion of the transaction remains contingent upon approval by Emergent shareholders, court orders, acceptance by the TSX Venture Exchange, and regulatory consents.