New Energy Metals announced that it has signed a letter of intent with Wealth Minerals to sell a 70% stake in its Cristal copper project located in northern Chile.
Letter of Intent
The Company, through its wholly-owned Chilean subsidary, has an option to acquire a 100% interest in the Project pursuant to an option agreement entered into with a third-party vendor.
Subject to satisfactory completion of due diligence by Wealth and acceptance by the TSX Venture Exchange of the transaction contemplated by Letter of Intent, the parties expect to enter into a definitive assignment and assumption agreement (the “Assignment Agreement”) for the assignment of a 70% interest in the Project to Wealth upon terms to be agreed upon by the parties.
Appointment of New Chief Financial Officer
The Company also announces the appointment of David Cross and the resignation of Blaine Bailey as the Company’s Chief Financial Officer, effective December 1, 2018.
Cross is a CPA, CGA and is currently a partner at Cross Davis & Company LLP, Chartered Professional Accountants, which provides accounting and consulting services to publicly traded companies. Mr. Cross has over 21 years of accounting experience and has been a partner of Cross Davis for eight years.
The company also announces that it has relinquished its option to acquire its Atacama lithium project, located in the Salar de Atacama district, Chile. The lithium project will no longer represent a financial obligation for the Company, which will allow New Energy Metals to focus on entering into strategic agreements and acquiring projects that deliver the highest shareholder value.
Source: Company Press Release