Nevada Silver Corporation (TSX-V:NSC) (NSC) has completed the acquisition of all the outstanding shares of North Star Manganese Inc (NSM) it did not already hold through its wholly-owned subsidiary Electric Metals (USA) Pty Limited (EML).
NSM closed the sale of 3,160,233 of its shares, representing 9.5% of its issued and outstanding shares on August 31, 2022. The other 90.5% of the outstanding shares continue to be held by EML.
On November 23, 2022, NSC announced that the Emily Manganese Project will become the company's flagship asset and that the company planned to change its name to Electric Metals (USA) Limited to better reflect its value proposition as a developer of battery and technology-related minerals, including its US manganese and silver properties.
READ: Nevada Silver reports visible manganese mineralization in inaugural drill program at Emily manganese project
The company determined to repurchase the NSM shares and the acquisition was accomplished through share exchange agreements in which each holder of NSM shares agreed to exchange their NSM shares for units of NSC on the basis of 2.04545 units per NSM share, with each unit comprised of one common share and one common share purchase warrant. In the aggregate, the company issued 6,464,113 units to the NSM shareholders.
Each warrant is exercisable to acquire one common share of the company at a price of $0.25 per common share for a period of 24 months following issuance. The expiry date of the warrants will accelerate in the event the volume-weighted average trading price of the shares on the TSX Venture Exchange is equal to or exceeds $0.30 per share for a period of 20 consecutive trading days. If this happens, the warrants will expire 30 days after notice of such an acceleration event.
The company also updated on the inaugural drill program at its high-grade Emily Manganese Project in Minnesota where a total of 3,780.6 feet (1,152.3 metres) of diamond core drilling has been completed to date. Seven holes have been completed to target depth and samples forwarded to the ALS laboratory facility in Reno, NV for analyses.
Additionally, the company clarified that it has granted an aggregate of only 3,150,000 stock options to certain directors, officers and consultants, and not the amount of 3,650,000 stock options as previously advised.
NSC is a US-based mineral development company with manganese and silver projects geared to supporting the transition to clean energy. Its principal asset is the Emily Manganese Project in Minnesota, which has been the subject of considerable technical studies, with $25 million invested to date. The company's mission in Minnesota is to become a domestic US producer of high-purity, high-value manganese metal and chemical products for supply to US energy, technology and industrial markets.
NSC will seek shareholder approval to change its name to Electric Metals USA (NYSE:MUSA) Limited at its Annual General Meeting in May 2023.
Contact the author at jon.hopkins@proactiveinvestors.com