Business
DeepRock Minerals Enters Agreement to Acquire a Net Profit Stream from Allied Critical Metals to Advance a Tungsten Pilot Plant & Quarry Operation in Portugal
Vancouver, BC – TheNewswire - March 20th, 2024 – DeepRock Minerals Inc. (CSE:DEEP) ("DeepRock" or "the Company"), is pleased to announce a letter agreement sign
About this update from Allied Critical Metals Inc.
[{"type":"text","content":"Vancouver, BC – TheNewswire - March 20th, 2024 – DeepRock Minerals Inc. (CSE:DEEP) (\"DeepRock\" or \"the Company\"), is pleased to announce a letter agreement signed with Allied Critical Metals Corp. (“Allied” or \"ACM\") to acquire (the “Acquisition”) a net profits stream for the Vila Verde Tungsten-Tin Project Test Plant (the “Project”) to process stockpiled tungsten mineralized material at the quarry. This stream delivers near-term financing to accelerate ACM’s plans for its tungsten processing operations in Portugal. Under the terms of the agreement, signed March 19th, 2024, DeepRock will acquire a 10% net profits stream from the operation of a pilot plant processing tungsten mineralized material. The net profits stream in respect of the pilot plant, is set to process up to 150,000 tonnes per year of tungsten mineralized material sourced from the Vila Verde tungsten property and the nearby Borralha tungsten property in Portugal. ACM holds exclusive contractual rights to acquire, develop, and exploit these properties, collectively known as the Tungsten Properties. DeepRock's 10% net profits interest will entitle DeepRock to receive the greater of 10% of the net profits from the sale of tungsten concentrate produced by the pilot plant or C$500,000 per year for a term of 10 years once the pilot plant is operating at an optimal level. Net Profit payments will be made quarterly following the commencement of commercial production from the pilot plant. To earn the 10% interest, DeepRock must pay ACM a total of C$1,000,000 in cash by April 30, 2024, with an initial deposit of C$200,000 (“Deposit”) due by March 31, 2024 and C$800,000 by April 30, 2024. Failure to complete the payment by the specified dates will result in the conversion of the Deposit (C$200,000) into common shares of ACM at a price of $0.10 per share for a total of 2,000,000 ACM shares. The net profits agreement is subject to a definitive agreement, which will outline the detailed terms and conditions of the net profits streaming arrangement and these details will be disclosed in a future news release. The agreement is subject to applicable securities laws and the policies of the Canadian Securities Exchange and the Company being able to raise the funds necessary to finance and close the transaction. No finder’s fee was paid related to the proposed acquisitio...