CBLT Inc. (TSX-V: CBLT) announced it had signed a letter of intent to buy all the mining assets owned by GTA Resources and Mining Inc. at a price of $1,050,000, to be paid in 35,000,000 treasury shares of CBLT.
After discussions, and in part to account for movements in GTA’s and CBLT’s respective share prices, GTA and CBLT have agreed to amend the Sale Agreement such that in addition to 35,000,000 shares of CBLT, CBLT will also issue to GTA 17,500,000 common share purchase warrants. Each Warrant shall have a two-year term and be exercisable at $0.08, and shall have an acceleration clause triggered if the closing price for CBLT’s shares exceeds $0.16 for 20 consecutive trading days. There is no standstill agreement or break fee in the Amended Sale Agreement.
CBLT has engaged an independent investment dealer and merchant bank licensed by the Ontario Securities Commission to provide a Market Analysis Report as to the fairness of the terms of the Amended Sale Agreement to the shareholders of CBLT. CBLT expects the Report to be formally delivered this week.
CBLT has called a shareholder meeting for January 7, 2019 to consider these and other matters. A copy of the Report will be enclosed with the materials sent to shareholders for that meeting.
GTA and CBLT are non-arm’s length as they have a Chief Executive Officer and Chief Financial Officer in common, both of whom are also directors of both GTA and CBLT. Each of CBLT and GTA has taken steps to manage all conflicts of interest.
CBLT is a Canadian mineral exploration company with a proven leadership team, targeting cobalt in reliable mining jurisdictions. CBLT continues to be a project generator and an efficient steward of its shareholders’ capital.
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