Business
Kingsview Minerals Signs Non-Binding Letter of Intent with Erco Holdings Ltd.
Toronto, Ontario--(Newsfile Corp. - November 14, 2023) - Kingsview Minerals Ltd . (CSE: KV...
About this update from Kingsview Minerals Ltd.
[{"type":"text","content":"Kingsview Minerals Signs Non-Binding Letter of Intent with Erco Holdings Ltd.Toronto, Ontario--(Newsfile Corp. - November 14, 2023) - Kingsview Minerals Ltd. (CSE: KVM) (FSE: 0L4) (the \"Company\" or \"Kingsview\") and Erco Holdings Ltd. of Nevada (\"Erco\") are pleased to announce the signing of a non-binding Letter of Intent (\"LOI\") for an asset purchase agreement for three saltwater disposal leases in Texas. The proposed transaction will be structured in the most efficient manner to result in the shareholders of Erco, directly or indirectly, holding between 78% to 84% the outstanding securities of Kingsview, dependent upon the amount of a concurrent financing that is completed. The final structure will be subject to satisfactory tax, corporate and securities law advice for both Kingsview and Erco. This transaction is subject to the completion of due diligence, a definitive agreement and any and all required shareholder and regulatory approvals. Following the transaction Kingsview plans to continue trading on the Canadian Securities Exchange (\"CSE\"). The transaction constitutes a change of business transaction for Kingsview.The terms of the LOI require Kingsview to approve a change of name, a share consolidation of one new common share for each seven existing common shares, and for Kingsview to have a positive working capital position. Erco is required to provide audited \"carve out\" financial statements and prospectus-level disclosure required for the updated listing statement.Concurrent with the completion of the definitive agreement and the 1 for 7 share consolidation, a US$1 million to US$2 million financing at US$0.20 per unit (the \"Financing\") on a post-consolidation basis. Under the terms of the Financing, each unit will consist of one common share and one common share purchase warrant.The LOI anticipates there being between 74 million and 79 million proforma common shares issued and outstanding at the time of completing the transaction. The new Board of Directors and Management team of Kingsview will be determined at the time of the signing of the definitive agreement.About Kingsview Minerals Ltd.Kingsview is a mineral exploration company focused on its gold and base metal exploration properties, including the flagship 13,056-hectare Echum Project and the 2,239-hectare Hubcap Project, both located in the active ...