Business
Mayo Lake Minerals Updates Merger with WestMountain Gold
703,300 Ounces of High-Grade Gold; Greater than 2,000,000 Ounce Total Resource Ottawa, Ontario--(Newsfile Corp. - March 12, 2024) - Mayo Lake Minerals Inc. (CSE
About this update from Mayo Lake Minerals, Inc.
[{"type":"text","content":" 703,300 Ounces of High-Grade Gold; Greater than 2,000,000 Ounce Total Resource Ottawa, Ontario--(Newsfile Corp. - March 12, 2024) - Mayo Lake Minerals Inc. (CSE: MLKM) (Mayo or Company) is pleased to report on the progress of Mayo's and WestMountain Gold, Inc.'s (WestMountain) merger as described in Mayo's press release of August 17, 2023. The Letter of Intent (LOI) as described in the press release outlined the proposed terms and conditions of a transaction pursuant to which Mayo and WestMountain plan to affect a three-cornered amalgamation of a wholly-owned subsidiary of Mayo and WestMountain that would result in Mayo indirectly acquiring all of the outstanding share capital of WestMountain (Transaction). The amalgamated entity resulting from the Transaction will continue to carry on the combined operations of Mayo and WestMountain. The Transaction, which is contemplated for completion in the first quarter of 2024, remains subject to Mayo and WestMountain entering into a definitive agreement and the receipt of all regulatory and other approvals. Mayo will issue a comprehensive press release pursuant to the policies of the Canadian Securities Exchange upon execution of a definitive agreement. To date, the companies have carried out extensive due diligence and are pleased with the progress. Pursuant to the LOI, Mayo will issue WestMountain shareholders that number of common shares at a deemed value of $0.08 per share in the capital of Mayo equivalent to fifty percent (50%) of the common shares issued and outstanding on a fully diluted basis at the time of closing. As additional consideration, Mayo will issue two (2) tranches of warrants on a pro-rata basis, each tranche equal to 10% of the issued and outstanding common shares of Mayo at the time of closing of the Transaction calculated on a fully diluted basis. Each warrant shall be exercisable for five (5) years from the date of issuance at the market price of Mayo's common shares at the time of closing of the Proposed Transaction. Each tranche will be exercisable when the following thresholds are met: (a) delineation of a compliant gold resource consisting of a minimum of two million inferred or better ounces and (b) delineation of a compliant gold resource consisting of a minimum of three million, inferred or better ounces. Upon completion of the Proposed Tran...