Business
Essex Minerals Signs Framework Finance Agreement With Zola Minerals, Inc.
Essex Minerals Signs Framework Finance Agreement With Zola Minerals, Inc. Canad...
About this update from Optegra Ventures Inc.
[{"type":"text","content":"\n \n \n \n Essex Minerals Signs Framework Finance Agreement With Zola Minerals, Inc.\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n VANCOUVER, BC\n \n ,\n \n March 31, 2021\n \n /CNW/ - Essex Minerals Inc. (the \"Company\" or \"Essex\") (TSXV: ESX) (OTCQB: ESXMF) (Frankfurt: EWX1) is pleased to announce that it has signed a Framework Finance Agreement with Zola Minerals Inc. (\"Zola\"), a non-arm's length private streaming company, which provides\n \n Essex\n \n with the option to be Zola's exclusive financing partner for each current or future project for which Zola identifies and negotiates a stream or royalty financing agreement.\n \n \n Under the terms of the Framework Finance Agreement, for projects where\n \n Essex\n \n wishes to exercise its option to be Zola's exclusive funding partner,\n \n Essex\n \n will incorporate a special purpose vehicle (\"SPV\") which shall have the right to earn an 80% economic interest in the stream by arranging 100% of the project financing.\n \n \n When project finance for the stream is arranged, Zola will have the right to exchange its 20% economic interest in the stream for shares in the SPV. The final structure of the project financing and the respective interests of\n \n Essex\n \n and Zola in the SPV will be determined project by project based on legal and tax advice for each party. The final structure would also be subject to approval of the TSX Venture Exchange.\n \n \n In certain circumstances, it may be beneficial to take advantage of investor interest in streaming and royalty companies and seek a separate listing for the SPV, in which case shareholder approval would be sought to dividend or distribute the shares in the SPV to\n \n Essex\n \n shareholders.\n \n \n \n Paul Loudon\n \n , President and CEO of\n \n Essex\n \n said: \"We are excited that we have reached a framework agreement with Zola which provides a clear structure and financing mechanism for\n \n Essex\n \n to execute a strategy to enter the streaming and royalty business alongside its gold exploration option...