Londo Nickel to Acquire Norwegian Nickel-Copper Projects in Option Agreement with EMX Royalty Ahead of ASX IPO

Londo Nickel to Acquire Norwegian Nickel-Copper Projects in Option Agreement with EMX Royalty Ahead of ASX IPO

Londo Nickel, a company preparing for an initial public offering (IPO) on the Australian Securities Exchange (ASX) later this year, has signed an option agreement with EMX Royalty to acquire 100% ownership of the Flåt and Bamble nickel-copper sulphide projects in Norway.

As per the deal, Londo Nickel will initially make a $30,000 (A$44,266) cash payment and has the option to pay an additional $20,000 to EMX to secure 100% interest in the EMX subsidiary company holding the two projects during a seven-month option period.

Upon the commencement of the IPO and ASX listing process, Londo Nickel will make an additional cash payment of up to $100,000 and issue 750,000 Londo Nickel shares to EMX, along with 1,000,000 options.

Despite the acquisition, EMX will retain a 2.5% net smelter return royalty interest in each of the two projects. Additionally, it will receive annual advance royalty payments on both projects starting from the third anniversary of the IPO. EMX will also receive $250,000 in milestone payments upon the announcement of a maiden joint ore reserves committee resource for each of the projects.

Furthermore, Londo Nickel will make additional milestone cash payments of $500,000 to EMX upon the delivery of a feasibility study for each project.

David Sumich, Executive Chair of Londo Nickel, expressed excitement about the acquisition, stating that the Flåt and Bamble projects will serve as exceptional battery metal assets for their planned ASX listing. The agreement ensures the integrity of the current capital structure and provides potential post-listing leverage. Sumich added that after the IPO, the company will consider transferring the Madagascan nickel assets, which are under a binding SPA, to Londo.

Under the agreement, Londo Nickel has committed to investing at least $300,000 and $100,000 in the Flåt and Bamble projects, respectively, within the first year of the IPO, and an annual investment of $300,000 starting on the second anniversary of the IPO.

Both Londo Nickel and EMX Royalty plan to leverage modern exploration methods and deposit models to advance the development of the Flåt and Bamble projects, with a focus on battery metals.

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