AmmPower Corp. is pleased to announce the sale to Consolidated Lithium Metals Inc. (“CLM“) of 24 mineral claims representing 1,283.08 hectares of concessions in the James Bay/Eeyou Istche region of Quebec (the “Claims”) from a wholly owned subsidiary (“Subco”) of AmmPower, subject to the terms and conditions set out in the corresponding asset purchase agreement dated as of July 20, 2023 (the “Agreement”).
Pursuant to the Agreement, as consideration for the acquisition of a 100% interest in the Claims (the “Acquisition”), CLM paid aggregate consideration of $60,000 in cash and granted to AmmPower a 1% net smelter return royalty affecting the Claims, which CLM has the option to repurchase at any time for $250,000. No finder fees are payable in connection with, and no change of control of CLM will result from, the Acquisition. Completion of the Acquisition remains subject to final approval of the TSX Venture Exchange (“TSXV”).
Rene Bharti, the chief executive officer and president and a director of CLM, is the president and a minority shareholder of AmmPower, and a director and officer of Subco, and the three companies share office space. Further, Ryan Ptolemy serves as the chief financial officer of both CLM and AmmPower. Notwithstanding the shared directors and officers, the Acquisition does not constitute a Related Party Transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”) because AmmPower and Subco are not Related Parties of CLM (as such terms are defined in MI 61-101). However, the Acquisition does constitute a Related Party Transaction, and was therefore characterized by the TSXV as a Reviewable Transaction, under TSX Venture Exchange Policies 1.1, 5.3, and 5.9 as a result of the shared officers and directors between AmmPower, Subco, and CLM.
