Alaros Exploration has signed a letter of intent (LoI) with 1001528518 Ontario (the target) to obtain exploration leases for tungsten sites in Nevada, US.
This acquisition will involve purchasing the target, which currently leases the properties.
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As part of the agreement, Alaros Exploration will issue a total of 10.5 million common shares at $0.05 each to the shareholders of the target, in exchange for all its outstanding shares.
This transaction values the target at C$525,000 ($384,696). Alaros currently has 15,391,557 common shares in circulation.
The properties include the Toy Property, with five claims in Churchill County, and the Nightingale Property, covering around 223 acres in the Nightingale District of Pershing County, Nevada.
The Nightingale District has been a mining hub since the 1920s and is known for its high-grade tungsten mines.
Both sites have year-round access, supported by state and secondary roads and nearby infrastructure.
The target has exploration leases, with options to buy, with Blacklight Holdings, which owns the properties.
These agreements require annual lease payments of $50,000 over six years, with an option to purchase the properties for $1.4m at any point during the lease term.
Alaros and the target are independent entities, and the transaction will not result in any new “control person” under Canadian Securities Exchange policies. No finder’s fees will be incurred with this transaction.
Once the transaction concludes, the target president, David Benavides, is expected to join the Alaros board.
The transaction is contingent upon conditions such as due diligence, mutually agreed documentation, and necessary regulatory and shareholder approvals.
There is no guarantee that these conditions will be fulfilled or that the transaction will be completed.
