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SRG Mining and Carbon ONE New Energy Group Sign Non-Binding Term Sheet
C-ONE to make C$17M investment in SRG SRG and C-ONE to develop anode material facility in Morocco SRG to maintain TSX-V listing and redomicile outside of Canada
About this update from Falcon Energy Materials Plc
[{"type":"text","content":" C-ONE to make C$17M investment in SRG SRG and C-ONE to develop anode material facility in Morocco SRG to maintain TSX-V listing and redomicile outside of Canada Montreal, Canada - TheNewswire - November 29, 2023 - SRG Mining Inc. (TSXV:SRG) (“SRG” or the “Company”) announced today that Carbon ONE New Energy Group Co., Ltd (“C-ONE”, together the “Parties”) and the Company have signed a non-binding term sheet (the “Term Sheet”) to invest approximately C$16.9 million (US$12.7 million) in SRG. The Term Sheet offers substantial additional advantages to the Parties and updates the previously announced agreement of July 9, 2023. SRG will maintain its listing on the TSX Venture exchange but has agreed to redomicile outside of Canada. The proposed transaction will therefore not require clearance from the Canadian Government under the Investment Canada Act. The Company and C-ONE have agreed to negotiate expeditiously the definitive transaction agreements including pricing, which are largely based on the agreements of July 9, 2023 between the Parties. The alliance between C-ONE and SRG (the “Anode Material Alliance”) remains unchanged and will focus on the development of a strategy to upgrade SRG and third-party graphite concentrates that meet all of C-ONE’s requirements and end-product specifications. The Parties have agreed to develop the Anode Material Alliance in the Kingdom of Morocco (“Morocco”). The Parties believe Morocco is strategically located in close proximity to the SRG’s assets in the Republic of Guinea. In Morocco, which has free trade agreements with both the United States of America as well as the European Union, the Anode Material Alliance will have access to key markets and customers. Closing conditions to the transaction include the redomiciliation of SRG outside of Canada as well as certain development milestones for the Anode Alliance in Morocco. Other customary closing conditions include recordals and registration with certain Chinese regulatory agencies. The transaction is also subject to approval by the TSX Venture Exchange. Upon closing of the private placement, SRG and C-ONE will enter into an investor rights agreement similar to the agreement announced on July 9, 2023. Among its key provisions, C-ONE will have the right to nominate two directors – one of whom will be independent – to SRG’s board. Matthieu Bos,...