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ROK Resources Enters into Lithium Share Exchange Agreement with EMP Metals Corp. and Lithium Management Agreement
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES REGINA, ...
About this update from Rok Resources, Inc. Class B
[{"type":"text","content":"ROK Resources Enters into Lithium Share Exchange Agreement with EMP Metals Corp. and Lithium Management Agreement NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES REGINA, SK / ACCESSWIRE / August 8, 2024 / ROK Resources Inc. (\"ROK\" or the \"Company\") (TSXV:ROK)(OTCQB:ROKRF) is pleased to announce it has entered into a Share Exchange Agreement with EMP Metals Corp. (\"EMP Metals\"), effective August 1st, 2024 (the \"Share Exchange Agreement\") wherein ROK will exchange its common shares of Hub City Lithium Corp. (\"Hub City Lithium\"), a private entity, in return for 17,085,000 common shares (each a \"Common Share\") of EMP Metals, a public entity which trades on the Canadian Securities Exchange under the trading symbol \"EMPS\".At Closing, ROK's ownership in EMP Metals will be approximately 17.11%. This ownership is inclusive of the Common Shares issued in the Share Exchange Agreement, plus shares issued through the Management Agreement, outlined below. The exchange of Hub City Lithium common shares for EMP Metals common shares is expected to have no tax implications to the Company due to 85(1) rollover provisions. Post-closing, EMP Metals will appoint Mr. Bryden Wright, President and Chief Operating Officer of ROK, to the Board of Directors of EMP Metals.\"The share exchange of ROK's interest from privately held Hub City Lithium to publicly traded EMP Metals marks another significant step in enhancing value for ROK and its shareholders. As the manager of operations and a significant shareholder in EMP Metals, ROK is eager to build on our early successes and advance one of the best-in-class lithium brine projects in North America,\" commented Bryden Wright, President and Chief Operating Officer.Closing is scheduled for four days following regulatory and exchange approval, however no later than September 30th, 2024. The common shares of EMP Metals to be received by the Company will be subject to the following escrow provisions:Common Shares ReleasedRestricted Period (from Closing)50%24-months50%36-monthsManagement AgreementFurther, the Company has entered into a Management Agreement with Hub City Lithium, a private entity which will be owned solely by EMP Metals after effect of the Share Exchange Agreement, effective August 1st, 2024 (the \"Management Agreement\") wherein the Company will con...