- Forge Resources Corp (FRGGF, Financial) plans to increase its stake in Aion Mining Corp from 60% to 80%.
- The $2,299,008.06 acquisition will be financed through share issuance and promissory notes.
- The transaction is subject to CSE regulatory approval.
Forge Resources Corp (FRGGF) has announced a strategic move to increase its ownership in Aion Mining Corp from 60% to 80%. The acquisition will be executed under an anti-dilution agreement, involving the purchase of 3,963,807 shares for a total of $2,299,008.06.
The financing plan for this transaction includes the issuance of 1,741,804 common shares of Forge Resources at $0.91 per share and the distribution of promissory notes worth $713,966.42. These notes carry an annual interest rate of 6.5% and will mature in two years or upon the completion of a $3 million hard dollar financing by the company.
This agreement involves non-arm's length parties, notably directors Cole McClay and Camilo Cordovez, necessitating the approval of the Canadian Securities Exchange (CSE). Completion of this transaction is not guaranteed and is contingent upon receiving all requisite regulatory approvals and consents.
Forge Resources is a junior exploration company that presently holds a 60% stake in Aion Mining, which is developing the fully permitted La Estrella coal project in Colombia. The company also has interests in the Alotta project, a prospective copper-gold-molybdenum site in Canada.