VANCOUVER, BC, April 12, 2021 /CNW/ - Further to the Company's
previously announced Framework Financing Agreement with Zola
Minerals Inc ("Zola"), a non-arm's length streaming company, Essex
Minerals Inc. (the "Company" or "Essex") (TSXV: ESX) (OTCQB: ESXMF)
(Frankfurt: EWX1) is pleased to announce that it has elected to be
Zola's exclusive financing partner for a new streaming and royalty
company with a focus on renewable energy.
The new company will be funded separately to Essex with the founding shares in the new
venture to be distributed pro-rata to Essex shareholders. A meeting of shareholders
has been called for June 10, 2021 to
approve the capital distribution.
Highlights
- Zola has secured exclusive access to a pipeline of long-life
renewable energy streams and is in advanced negotiation on
additional streams in the renewable energy and metals sectors.
- Essex has undertaken to
arrange financing for the streaming venture as follows:
-
- Essex is forming a new
subsidiary called Optegra Capital Corp ("Optegra") to which it will
assign its rights under the Framework Financing Agreement with Zola
announced on March 31, 2021.
- Optegra plans to raise up to $50
million to fund the initial streams after which it will file
a non-offering prospectus with the British Columbia Securities
Commission and seek a new listing as a Tier 1 Investment Company on
the TSX Venture Exchange.
- Optegra will also have the rights to acquire Zola's current and
future rights to other streams being negotiated in the renewable
energy, battery and precious metals sectors.
- It is proposed that approximately $5.6
million in capital will be returned to existing Essex shareholders through the distribution of
Optegra shares. The capital distribution is the equivalent of
$0.20 per Essex share in share capital, and will occur
once the Optegra prospectus is filed and the TSX Venture Exchange
has approved the listing.
- It is anticipated that Essex
shareholders will hold approximately 10% of Optegra after the
capital raise. However, the final capital structure and the
respective interests of Essex and
Zola will be based on legal and tax advice for each party and will
be subject to approval of the TSX Venture Exchange and the
independent directors of Essex.
- Essex will remain focused on
its existing Australian gold exploration joint venture projects,
with budgets and work programs for the 2021 field season currently
being finalized.
- The record date for voting on the Optegra share distribution is
May 4, 2021, with shareholders of the
Company being asked to approve the distribution as a special
resolution at the June 10, 2021
shareholders meeting.
Paul Loudon, President and CEO of
Essex said: "We are excited that
we are able to provide Essex
shareholders with this special dividend of shares in a new and
exciting streaming and royalty company, with a particular focus on
income from renewable energy and battery metals alongside high
alpha returns from gold.
"The Optegra shares will have the potential to provide long-term
capital growth for Essex
shareholders, while Essex shares
themselves will continue to provide shareholders with the potential
to benefit from the significant upside that a major gold discovery
would bring."
About Essex
Essex Minerals is an exploration and development company focused
on mineral exploration and development opportunities where it can
adopt an option earn-in and joint venture model without the
issuance of vendor shares. By identifying geological teams
that have already expended the time and capital to assemble top
quality, advanced projects, with a particular emphasis on gold
projects in Tier 1 jurisdictions. Management's time is shared
across several different projects, as the geological teams already
in place manage the approved exploration and development
programmes. This strategy has the potential to accelerate the
growth in shareholder value for Essex by earning an interest in a range of
projects of merit in a much shorter time frame than otherwise would
be possible.
ON BEHALF OF ESSEX MINERALS
INC.
Paul Loudon
President & CEO
www.essexminerals.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Essex Minerals Inc