Vancouver, British Columbia--(Newsfile Corp. - September 7, 2022) - New Energy Metals Corp. (TSXV: ENRG) (OTC Pink: NEMCF) (the "Company") announces that it has entered into a mineral property option agreement (the "Option Agreement") whereby the Company has acquired the exclusive right and option to purchase, subject to the reservation of a 2% net smelter returns royalty, a 100% title and interest in and to 26 mineral claims covering approximately 7,000 hectares located in the Omineca Mining Division of British Columbia (the "Property").
Pursuant to the terms of the Option Agreement, the Company is required to issue the following common shares and complete the following cash payments to the optionor of the Property (the "Optionor"), and completing the following staking obligations:
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(a) pay an aggregate of $220,000 in cash to the Optionor as follows:
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(i) $25,000 on the execution date of the Option Agreement (the "Execution Date");
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(ii) $45,000 on or before the 12 month anniversary of the Execution Date;
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(iii) $60,000 on or before the 24 month anniversary of the Execution Date; and
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(iv) $90,000 on or before the 36 month anniversary of the Execution Date;
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(b) issue an aggregate of 1,200,000 common shares to the Optionor as follows:
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(i) 300,000 on the closing date, which is anticipated to be 10 days following the date on which the TSX Venture Exchange accepts the Option Agreement pursuant to the policies of the exchange;
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(ii) 300,000 on or before the 12 month anniversary of the Execution Date;
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(iii) 300,000 on or before the 24 month anniversary of the Execution Date; and
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(iv) 300,000 on or before the 36 month anniversary of the Execution Date; and
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(c) complete not less than $5,000 worth of staking or other similar acquisition of mineral claims within the Area of Interest (as defined in the Option Agreement) within 12 months of the Execution Date.
In addition, and subject to the exercise of the option by the Company, the Company shall be obligated to complete the following share issuances upon the occurrence of certain milestones:
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(a) issue 200,000 common shares to the Optionor upon the publication of a positive preliminary feasibility study or pre-feasibility study on the Property;
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(b) issue 200,000 common shares to the Optionor upon the Commencement of Commercial Production (as defined in the Option Agreement); and
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(c) issue 200,000 common shares to the Optionor upon the successful determination of an inferred mineral resource or indicated mineral resource on the Property of not less than 2,000,000 ounces of gold.
The Option Agreement also includes certain advance royalty payments obligations following the 7th anniversary of the Execution Date.
The Company plans to provide a detailed summary of the Property in a separate news release to be issued in the near future.
The Option Agreement remains subject to approval by the TSX Venture Exchange.
About the Company
New Energy Metals is focused on the exploration and development of energy metals.
On behalf of New Energy Metals Corp.
Stuart Ross, CEO
T: 778-510-5757
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein, including the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others: requirements for additional capital; future prices of precious metals, copper and lithium; changes in general economic conditions; changes in the financial markets and in the demand and market price for commodities; other risks of the mining industry; the inability to obtain any necessary governmental and regulatory approvals; changes in laws, regulations and policies affecting mining operations; hedging practices; currency fluctuations; as well as those factors discussed under the heading "Risks and Uncertainties" in the Company's most recent management's discussion and analysis and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. Except as otherwise required by law, the Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/136304
