EGMCF - Emergent Metals Options New York Canyon Property in Nevada to Ivanhoe Electric

(TheNewswire)

Vancouver, British Columbia / TheNewswire / March 1, 2024 --Emergent Metals Corp. ("Emergent" or the “Company”)(TSXV:EMR) (OTC:EGMCF) announces that it hasentered into an Option Agreement for Purchase and Sale (the“Agreement”) of the Company’s New York Canyon Property (the“Property”) to Ivanhoe Electric (NYSE:IE)(“IE”).  TheProperty consists of 21 patented claims and 792 unpatented miningclaims totaling about 16,000 acres (6,500 hectares).  Located about30 miles (48 kilometers) east of Hawthorne, the Property hosts acopper skarn deposit at Longshot Ridge, and further skarn and porphyryexploration targets at Longshot Ridge, Copper Queen, Champion, andEmma.

Key terms of the transaction are as follows:

• Emergent will grant IE the option (“Option”) toacquire 100% of the Property.

• The term of the Option (the “Option Term”) will beapproximately 18 months ending on August 1, 2025.

• In consideration for the Option, IE will pay EmergentUS$300,000 upon signing of the Agreement (the “Option Payment”),of which approximately US$157,000 will be used by Emergent to satisfycertain land payment obligations in respect of the Property.

• IE will have the exclusive right to conduct explorationon the Property during the Option Term.

• IE will be responsible for claim maintenance paymentsduring the Option Term.

• Should IE elect to exercise its Option to purchase theProperty, the purchase price will be US$2.0 million (the “PurchasePrice”) which includes the Option Payment of US$300,000 andremaining purchase price of US$1,700,000 (the “Remaining PurchasePrice”).

• US$700,000 of the Remaining Purchase Price will be paidin cash (the “Cash Payment”).

• US$1.0 million of the Remaining Purchase Price will bepaid in common stock of IE (the Share Payment”), to be issued at thehigher of (1) the IE September 19, 2023, follow-on public offeringprice of US$13.50 per share or (2) the 30-day volume weighted averageprice determined on the date of exercise notice, but subject to stockexchange rules as well as a possible cash top-up in certaincircumstances based on IE’s future share price.

• On closing of the exercise of the Option, Emergent willreserve a 1% Net Smelter Royalty (the “Production Royalty”) onclaims within the Property that are not already encumbered with aroyalty of 1% or greater from previous owners. However, IE will havethe right prior to the commencement of commercial production, tobuy-out the Production Royalty for a purchase price of US$2.0 millionin cash and/or IE shares (the “Royalty Buyout”).

• IE shall also retain a first right of refusal toacquire the Production Royalty in the event that Emergent wishes tosell, assign, or transfer the Production Royalty to an unaffiliatedthird party.

The transaction will occur between IE’s subsidiaryIvanhoe Electric Nevada Holdings Inc. and Emergent’s subsidiaryGolden Arrow Mining Corporation.

David Watkinson, President and CEO of Emergent stated,“If the Option is exercised by IE, it will result in themonetization of the Property through its sale within a relativelyshort timeframe and fits with the acquisition and divestiture businessmodel of the Company.  IE is the perfect partner to have at New YorkCanyon, as they have a propriety geophysical surveying technologycalled Typhoon ™ that can detect the presence of sulfideminerals containing copper, nickel, gold, and silver at depths of over1.5 kilometers.  IE will have the advantage of exploring a large16,000-acre land package consolidated by Emergent since 2020, use ofhistoric exploration work completed on the Property by SearchlightResources Inc, (TSXV:SCLT)(formerly Canyon Copper Corp., formerlyAberdeen Mines Ltd.) and others prior to 2020, and use of recentexploration work completed by Kennecott Exploration Company from 2020to 2023 on the Property.  We wish IE success in their upcomingexploration efforts.”

About Emergent

Emergent is a gold and base metal exploration companyfocused on Nevada and Quebec.  The Company’s strategy is to lookfor quality acquisitions, add value to these assets throughexploration, and monetize

them through sale, joint ventures, option, royalty, andother transactions to create value for our shareholders (anacquisition and divestiture business model).

In Nevada, Emergent’s Golden Arrow Property is anadvanced stage property with a well-defined measured and indicatedgold and silver resource.  The New York Canyon Property is a copperskarn, copper porphyry, and gold exploration property south of andabutting the past producing Santa Fe Gold Mine. The Mindora Property(aka West Santa Fe Property) is a gold, silver, and base metalproperty located twelve miles from the Santa Fe Gold Mine and optionedto Lahontan Gold Corporation (TSXV:LG). Buckskin Rawhide East is agold and silver property leased to Rawhide Mining LLC, operators ofthe Rawhide Mine. Emergent also owns the Buckskin Rawhide West andKoegel Rawhide properties, two early-stage gold and silver projectslocated near Rawhide Mine.

In Quebec, the Casa South Property is a large goldexploration property adjacent to and south of Hecla MiningCorporation’s (NYSE:HL) operating Casa Berardi Mine with multipleexploration targets identified. The Trecesson Property, located about50 km north of the Val d’Or mining camp, has three gold explorationtargets with multiple high-grade (>10 g/t) gold intercepts fromhistoric and recent drilling.  Also in Quebec, Emergent has a 1% NSRin the Troilus North Property, part of the feasibility stage TroilusMine Property being explored by Troilus Gold.  Emergent also has a 1%NSR in the East-West Property, owned by O3 Mining and part of theirfeasibility stage Marban Alliance Property.

Note that the location of Emergent’s propertiesadjacent to producing or past producing mines does not guaranteeexploration success at Emergent’s properties or that mineralresources or reserves will be delineated. For more information on theCompany, investors should review the Company’s website at www.emergentmetals.com or view the Company’s filings available at www.sedarplus.ca .

On behalf of the Board ofDirectors

David G. Watkinson,P.Eng.
President & CEO

For further information please contact:

David G. Watkinson, P.Eng.
Tel: 530-271-0679 Ext 101
Email: info@emergentmetals.com

Neither TSX Venture Exchange nor itsRegulation Services Provider (as the term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.

Cautionary Note onForward-Looking Statements

Certain information contained in this news releaseconstitutes “forward-looking information” or “forward-lookingstatements” (collectively, “forward-looking information”).Without limiting the foregoing, such forward-looking informationincludes statements regarding the process and completion of theOffering, the use of proceeds of the Offering and any statementsregarding the Company’s business plans, expectations and objectives.In this news release, words such as “may”, “would”,“could”, “will”, “likely”, “believe”, “expect”,“anticipate”, “intend”, “plan”, “estimate” and similarwords and the negative form thereof are used to identifyforward-looking information. Forward­ looking information should notbe read as guarantees of future performance or results, and will notnecessarily be accurate indications of whether, or the times at or bywhich, such future performance will be achieved. Forward-lookinginformation is based on information available at the time and/or theCompany management’s good­ faith belief with respect to futureevents and is subject to known or unknown risks, uncertainties,assumptions and other unpredictable factors, many of which are beyondthe Company’s control. For additional information with respect tothese and other factors and assumptions underlying the forward-lookinginformation made in this news release, see the Company’s most recentManagement’s Discussion and Analysis and financial statements andother documents filed by the Company with the Canadian securitiescommissions and the discussion of risk factors set out therein. Suchdocuments are available at www.sedar.com under the Company’s profileand on the Company’s website at www.emergentmetals.com. Theforward-looking information set forth herein reflects the Company’sexpectations as at the date of this news release and is subject to change after such date. The Company disclaimsany intention or obligation to update or revise any forward-lookinginformation, whether as a result of new information, future events orotherwise, other than as required by law.

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