- Hansco Capital Corp. (HCO.P) has given an update regarding its qualifying transaction with Aurex Energy Corp
- Hansco will acquire 100 per cent of the issued and outstanding common shares of Desert Strike Resources (US) Inc. (DSRI) from Aurex
- DSRI holds a 70-per-cent right, title and interest in the Cook Property in Humboldt County, Nevada, subject to a 2.5-per-cent net smelter royalty interest
- The transaction is intended to qualify as Hansco’s “qualifying transaction”
- Hansco is a capital pool company
- Hansco Capital Corp. remained unchanged at C$0.175 as at 1:51 PM ET
Hansco Capital Corp. (HCO.P) has provided an update regarding its qualifying transaction with Aurex Energy Corp.
According to the terms of the agreement, Hansco will acquire 100 per cent of the issued and outstanding common shares of Desert Strike Resources (US) Inc. (DSRI) from Aurex.
DSRI holds a 70-per-cent right, title and interest in and to the Cook Property, located in Humboldt County, Nevada, subject to a 2.5-per-cent net smelter royalty interest (NSR).
Hansco, Aurex and DSRI are parties to a share-purchase agreement dated as of July 19, 2021 in respect to the transaction.
Hansco will acquire 100 per cent of the issued and outstanding common shares of DSRI from Aurex in exchange for the issuance of an aggregate of 14,000,000 shares to Aurex at a deemed price of $0.15 per share, representing aggregate consideration of $2,100,000.
The parties have amended the share-purchase agreement in line with amending agreements dated as of May 31, 2022 and August 8, 2022.
Under the amending agreements, Hansco agreed to make an unsecured loan of up to $25,000 to Aurex, which will bear an annual interest at 6 per cent, compounded annually, and is repayable on or before October 31, 2022.
Any amounts advanced under the loan will be used by Aurex for transaction expenses which have been pre-approved by Hansco.
To date, Hansco has advanced $22,875 under the loan.
The transaction is intended to qualify as Hansco’s “qualifying transaction” as defined by Policy 2.4 of the TSX Venture Exchange.
Following closing, the resulting issuer will be a “mining” issuer under the policies of the Exchange.
Hansco is a capital pool company.
Hansco Capital Corp. remained unchanged at C$0.175 as at 1:51 PM ET.