Sona’s Interest in Legacy Crescent Lake Lithium Property Sold to Midex Resources
Halifax, Nova Scotia — (Newsfile Corp. – May 9, 2023) – Sona Nanotech Inc. (CSE: SONA), (OTCQB: SNANF) (the “Company” or “Sona”) is pleased to announce that an agreement for the sale of its non-core interest in the Crescent Lake lithium property located in Ontario, Canada (“Property”) to an arm’s length party, Midex Resources Ltd. (“Midex”), has been finalized (“Midex Agreement” or “Transaction”).
The Property was acquired by Antler Gold Inc. (“Antler”) from Sona in May 2019 pursuant to a property acquisition agreement (“2019 Agreement”) (see news release dated May 16, 2019). Under the 2019 Agreement, Sona is entitled to receive 50% of the consideration received by Antler for the Property, net of Antler’s aggregate expenses related to the marketing, selling, upkeep and maintenance of the Property (“Antler’s Expenses”) incurred between the disposition of the Property to Antler and the date of the sale of the Property, to a maximum of $3,000,000.
Under the Midex Agreement, Antler has agreed to sell the Property to Midex in consideration of C$125,000 in cash (the “Cash Consideration”) and the issuance of common shares of Midex (“Midex Shares”) representing 12% of the issued and outstanding capital of Midex, subject to certain adjustments (the “Share Consideration”).
Accordingly, Sona is entitled to 50% of the Cash Consideration less Antler’s Expenses and Midex will register 50% of the Share Consideration in the name of Sona. Each of Antler and Sona entered into an investor rights agreement with Midex in relation to the Midex Shares. The Midex Shares issuable pursuant to the Transaction will be subject to certain resale restrictions and escrow conditions.
“We wish to thank Antler for partnering with us to source and execute this Transaction of a non-core asset for Sona. The proceeds of this Transaction will provide additional value to the Company as it pursues the development of its Targeted Hyperthermia Therapy cancer treatment using its proprietary, biocompatible gold nanorods.”, Sona’s CEO, David Regan, commented.