NexGen Mining Announces Extension to Letter of Intent to Acquire Electrum Copper Corp.

Rhea-AI Summary

NexGen Mining Incorporated (OTCPK:NXGM) announced an extension to its non-binding letter of intent to acquire Electrum Copper Corp. for shares of common stock. Electrum holds the Candela and Don Indio Projects in Mexico. The parties aim to finalize definitive agreements by September 30, 2022. Additionally, Electrum has provided NXGM with an unsecured loan of $100,000 at a 6% annual interest rate, maturing either six months post-termination of the transaction or two years from the promissory note's issue. The transaction is contingent upon due diligence and the negotiation of definitive terms.

Positive

• Acquisition of Electrum Copper Corp. could enhance NXGM's project portfolio and market presence.
• The loan of $100,000 from Electrum provides immediate funds for NXGM's operations and transaction expenses.

Negative

• The letter of intent is non-binding, indicating that the deal may not proceed.
• The loan's terms introduce financial obligations that may affect NXGM's cash flow.

RENO, Nev.--(BUSINESS WIRE)-- NexGen Mining Incorporated (“OTCPK:NXGM”) (the “Company”), today announced that it has signed an extension to its non-binding letter of intent to acquire Electrum Copper Corp. (“Electrum”) for shares of the Company’s common stock. Electrum is an exploration and development company and the owner of the Candela and Don Indio Projects, both located in Mexico. Pursuant to the extension, the parties have agreed to use their best efforts to enter into definitive agreements on or prior to September 30, 2022.

Further, in connection with the extension of the letter of intent, Electrum provided an unsecured loan to the Company to fund operating activities and expenses incurred in connection with the transaction contemplated by the letter of intent. The principal amount of the loan is $100,000, which accrues interest at a rate of 6% per annum, compounding semi-annually, and has a maturity of the earlier of the six month anniversary date of the termination or abandonment of the transaction contemplated by the letter of intent or the second anniversary of the promissory note evidencing the loan.

The structure of the transaction, and the timing of the closing of the transaction, will be based on considerations relating to matters of applicable corporate, securities, tax and other applicable laws and regulations. The letter of intent is non-binding and the transaction is subject to due diligence, the negotiation of definitive terms and other conditions.

Forward-Looking Statements

Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words "plan," "believe," "expect," "anticipate," "intend," "estimate," "project," "may," "will," "would," "could," "should," "seeks," or "scheduled to," or other similar words, or the negative of these terms or other variations of these terms or comparable or similar language, or by discussion of strategy or intentions. The Company does not intend to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220610005595/en/

Marc J. Andrews

President & CEO, 775-250-0577

marc@nxgminc.com

www.nxgminc.com

Source: NexGen Mining Incorporated

FAQ

What acquisition did NexGen Mining announce?

NexGen Mining announced an extension to its letter of intent to acquire Electrum Copper Corp.

What projects does Electrum Copper Corp. own?

Electrum Copper Corp. owns the Candela and Don Indio Projects located in Mexico.

What is the value of the loan provided to NexGen Mining?

Electrum provided NexGen Mining with an unsecured loan of $100,000.

What are the terms of the loan from Electrum to NexGen Mining?

The loan accrues interest at a rate of 6% per annum and matures six months after termination of the transaction or two years from the note's issue.

When is the definitive agreement for the acquisition expected?

The parties aim to finalize definitive agreements by September 30, 2022.