Critical One Updates Acquisition of Howells Lake Project
Deal News | Jan 13, 2025 | Globenewswire
Critical One Energy Inc. has entered into definitive agreements to acquire 100% interest in the Howells Lake Antimony-Gold Project located in Ontario, Canada. The acquisition involves two separate agreements: one with Bounty Gold Corp. and another with several vendors, known as the Vendor Group. Critical One will pay Bounty Gold $25,000 in cash and issue 125,000 common shares, while also granting a 2% net smelter return (NSR) with a buyback option. For the Vendor Group's portion, the company will issue a total of 4,500,000 common shares over two years and provide a $100,000 cash payment for initial exploration work. The Vendor Group will also receive a 2% NSR with a buyback option, consulting contracts, and an additional $1 million cash payment upon delivery of a compliant resource estimate and technical report. Critical One's acquisition aims to bolster its critical minerals portfolio, crucial for clean energy and technological advancements, positioning the company favorably to meet global demand.
Sectors
- Mining and Metals
- Energy
Geography
- Canada – The Howells Lake Project is located in Ontario, Canada, and the business operations of Critical One are based in Toronto.
- Namibia – While not the focus of the acquisition, Critical One's portfolio includes uranium projects in Namibia, highlighting its international scope.
Industry
- Mining and Metals – The article focuses on Critical One's acquisition of a mining project for antimony and gold, central to the mining and metals industry.
- Energy – Critical One positions itself as a critical minerals and upstream energy company, emphasizing its role in powering clean energy technologies.
Financials
- CDN$25,000 – Initial cash payment to Bounty Gold for their portion of the Howells Lake Project.
- 125,000 Common Shares – Equity issued to Bounty Gold as part of the acquisition consideration.
- 2,000,000 Common Shares – Initial Vendor Group Share Issuance within ten days of the agreement.
- 100,000 Cash Payment – Cash payment to Vendor Group for initial exploration and studies by January 15, 2025.
- 1,500,000 Common Shares – First anniversary share issuance to Vendor Group.
- 1,000,000 Common Shares – Second anniversary share issuance to Vendor Group.
- CDN$1 million – Additional case payment upon delivery of a technical report and compliant resource estimate.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Critical One Energy Inc. | Acquirer | Company | A company focused on critical minerals and upstream energy, previously known as Madison Metals Inc. |
| Bounty Gold Corp. | Vendor | Company | Bounty Gold Corp. is selling its portion of the Howells Lake Project to Critical One. |
| Vendor Group | Vendor | Company | A group of vendors collectively selling their interest in the Howells Lake Project to Critical One. |
| Bruce Durham, P.Geo. | Qualified Person | Person | Reviewer of the technical content in the release, as per NI 43-101 compliance. |
| Duane Parnham | Executive Chairman & CEO | Person | Executive Chairman and CEO of Critical One Energy Inc. |
| Adam Bello | Manager, Media & Analyst Relations | Person | Handles media inquiries for Critical One through Primoris Group Inc. |