Trek Metals (ASX:TKM) has received an exercise notice from Advanced Energy Fuels in relation to its option and acquisition agreement from September 2024 for the Hendeka-South Woodie Woodie Manganese Project in the Pilbara region of Western Australia.
Advanced Energy is currently undertaking a reverse takeover of Cavalry Capital (TSX-V:CVY.P) to list on the TSX-V as AE Fuels Corporation (AEFGL).
Upon settlement of this transaction, Trek will be eligible to receive $450,000 in cash as well as holding 8 million shares in the renamed company. This will equate to around $2.19 million, representing 19.31% of the undiluted shares.
Trek will deploy cash received to priority gold and manganese targets at the Christmas Creek Project in Western Australia.
Trek CEO Derek Marshall says Advanced Energy’s takeover and relisting represents a “positive opportunity for Trek”.
“The deal is structured in a way that gives Trek significant exposure to future upside from the exploration and development of the Hendeka-South Woodie Woodie Project and the advancement of AEFGL through a 19.31% shareholding in the TSX-listed company,” Marshall says.
“This is consistent with the company’s strategic focus on our flagship Christmas Creek Manganese and Gold Project in the Kimberley region.”
Trek Metals is a minerals explorer focused on unlocking value in underexplored regions.
Write to Maddison Elliott at Mining.com.au
Images: Trek Metals
