Silver Elephant Mining Executes Coal NSR Amendment with Battery Metals Royalties, Extends LOI on its 45% Coal Asset Sale to Year End

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[{"type":"text","content":"Silver Elephant Mining Executes Coal NSR Amendment with Battery Metals Royalties, Extends LOI on its 45% Coal Asset Sale to Year EndVANCOUVER, BC / ACCESSWIRE / May 18, 2022 / Silver Elephant Mining Corp. (\"Silver Elephant\") (TSX:ELEF, OTCQX:SILEF, Frankfurt:1P2N) and Battery Metals Royalties Corp. (\"Battery Metals\") announce that they have executed an NSR Amending Agreement in connection with the Letter of Intent (\"LOI\") announced on April 4, 2022. The NSR Amending Agreement will adjust the royalty payable to Battery Metals under an existing NSR agreement dated August 25, 2021 in respect of coal extracted from Silver Elephant's Ulaan Ovoo coal mine in Mongolia from US$2 per tonne to the greater of: (i) US$3 per tonne; (ii) 5% of the gross coal sales price; and (iii) 3% of ICE NewCastle 5,500GCV benchmark price if coal is sold to China. In consideration, Battery Metals will transfer 990,485 common shares of Flying Nickel Mining Corp. held by Battery Metals to Silver Elephant at a deemed price of $0.34 per share for aggregate consideration of $336,765.The parties have also amended the LOI (\"Amended LOI\") by waiving the penalty and termination fees and extending the closing date to December 31, 2022, to allow sufficient time for Battery Metals to complete a listing on the TSX Venture Exchange (the \"Listing\"). Pursuant to the Amended LOI, Silver Elephant shall transfer a 45% equity interest in its wholly-owned subsidiary, Mega Thermal Coal Corp. (\"Mega Coal\"), to Battery Metals in exchange for 16,000,000 common shares of Battery Metals (the \"Transaction\"). In connection with the Transaction, Silver Elephant intends to distribute the remaining 55% equity interest in Mega Coal to Silver Elephant shareholders prior to December 31, 2022.Silver Elephant and Battery Metals believe the Transaction will provide Silver Elephant shareholders with direct participation in thermal coal by receiving Mega Coal shares and bolster Battery Metals' investment and royalty portfolio.Related Party TransactionEach of the Transaction and the NSR Amending Agreement is a ‘related party' transaction in accordance with Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). For both Silver Elephant and Battery Metals, the NSR Amending Agreement is exempt from the valuation and mino...

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