Sun Summit sold its property and royalty interests covering approximately 92,488 hectares in Mexico to Green Earth Metals Inc., an arm’s length private British Columbia company founded by geoscientist Richard Osmond, for 5,000,000 Green Earth common shares and warrants to purchase a further 2,000,000 Green Earth common shares for five years.
- Green Earth common shares: Sun Summit will receive 5,000,000 common shares of Green Earth representing approximately 32.4% of Green Earth’s post-purchase outstanding common shares.
- Green Earth warrants: Sun Summit will also receive warrants to purchase a further 2,000,000 common shares of Green Earth. The warrants will be exercisable for five years at a price per share equal to the offering price of Green Earth’s shares in its initial public offering.
- Eight wholly-owned properties and three NSR royalties being sold: Sun Summit has agreed to sell eight wholly-owned properties covering approximately 83,548 hectares, title to which has either been granted or is pending (including one property covering 74,088 hectares being reviewed for possible archeological sites within the concession area), and three 1% net smelter returns royalties on properties covering 8,940 hectares, title to which has either been granted or is pending.