Champion Electric Enters into Binding LOI to Option Baner Gold Project in Idaho to Prestwick Capital Corporation

Newsfile Corp.
6 min read

All amounts expressed are in Canadian dollars

Toronto, Ontario--(Newsfile Corp. - May 15, 2024) - Champion Electric Metals Inc. (CSE: LTHM) (OTCQB: CHELF) (FSE: 1QB0) ("Champion Electric" or the "Company") is pleased to announce that it has entered into a binding letter of intent (the "LOI") with respect to a transaction (the "Transaction") whereby Prestwick Capital Corporation Limited (TSXV: PWIK) ("Prestwick") will obtain an option (the "Option") to acquire from Champion Electric a 100% undivided interest in and to the mineral claims comprising the Baner gold project located in Idaho County, Idaho, USA (the "Baner Gold Project"). The Baner Gold Project is comprised of 215 unpatented lode claims covering approximately 4,520 acres (1,829 hectares).

Jonathan Buick, President and CEO, commented: "Once Champion Electric made the decision to pivot to critical minerals, we've been looking for a partner who would be able to advance our gold assets and give them the attention they deserve. The Baner Gold Project has always been very promising, with results strong enough that it got the attention of Prestwick's founders. It's an experienced group of people that has had numerous world-class mining successes, including Kirkland Lake Gold and Rupert Resources, they have the right experience to bring capital and expertise to explore and develop the Baner Gold Project while Champion focuses on its lithium and cobalt operations."

Prestwick is a "capital pool company" as defined in the policies of the TSX Venture Exchange (the "Exchange") and intends the Transaction to constitute its Qualifying Transaction (as such term is defined in the policies of the Exchange).

The Transaction

The LOI contemplates the negotiation and execution of a binding definitive option agreement (the "Option Agreement"), and to exercise the Option, Prestwick will be required to make cash payments and issue securities as follows:

  1. Prestwick has paid Champion $25,000 upon execution of the LOI.

  2. On completion of the Transaction, paying or issuing (as applicable) to Champion:

    1. $75,000;

    2. 1.1 million common shares of Prestwick ("Common Shares"); and

    3. warrants to purchase up to 200,000 Common Shares at $0.30 per share for two (2) years from the date of issuance.

  3. Paying or issuing (as applicable) to Champion within 18 months from the completion of the Transaction ("Payment #1 Date"):

    1. $350,000;

    2. 200,000 Common Shares; and

    3. warrants to purchase up to 200,000 Common Shares at the last closing price for the Common Shares prior to the date of issuance, for two (2) years from the date of issuance.

  4. Paying or issuing (as applicable) to Champion within 12 months from the Payment #1 Date ("Payment #2 Date"):

    1. $500,000; and

    2. warrants to purchase up to 200,000 Common Shares at the last closing price for the Common Shares prior to the date of issuance, for two (2) years from the date of issuance.

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