Emergent Metals Corp. (TSXV: EMR, OTC: EGMCF, FRA: EML, MUN: ELM) provided an update on the sale of its Golden Arrow Property in Nevada, revealing that Fairchild Gold Corp. has initiated the process of seeking shareholder approval to complete the transaction. Fairchild is preparing a management information circular and proxy materials for a special meeting of its shareholders scheduled for June 9, 2026, where approval of the asset purchase agreement will be sought. Subject to shareholder and regulatory approvals, including final acceptance from the TSX Venture Exchange, the transaction is expected to close in June 2026.
The transaction involves an asset purchase agreement dated March 23, 2026, between Emergent, Fairchild, and their respective Nevada subsidiaries. Key terms include a cash payment of US$350,000 from Fairchild to Emergent upon TSXV approval, in addition to a previously paid non-refundable deposit of US$250,000. Fairchild will also issue 12.5 million common shares to Emergent at a deemed price equal to the closing price on the last trading day before issuance. A senior secured promissory note of US$3.5 million will be issued, bearing 8.5% annual interest payable semi-annually, with a five-year term. The note is secured by a first-ranking security interest over the property and related assets.
The note includes an early repayment bonus: if Fairchild repays at least US$500,000 immediately upon a financing of at least US$3 million, and an additional US$2.5 million within six months, Emergent will waive the remaining US$500,000. The principal amount steps up to US$4 million if unpaid after three years, and US$5 million if unpaid after four years. Emergent will retain a 0.5% net smelter return royalty on the property, which Fairchild can buy out for US$1 million before the fourth anniversary, US$1.5 million between the fourth and seventh anniversaries, after which the buyout right expires. Fairchild must also fund a US$40,000 reclamation bond at closing.
The Golden Arrow Property is an advanced-stage gold and silver asset with a well-defined measured and indicated resource. Emergent’s strategy, termed a Project Accelerator, involves acquiring quality assets, adding value through exploration, and monetizing them via sales, joint ventures, or royalties. Beyond Golden Arrow, Emergent holds interests in several Nevada and Quebec properties, including New York Canyon, West Santa Fe, Buckskin Rawhide East, Casa South, and Trecesson. The company also holds net smelter return royalties on properties such as Troilus North, EastWest, and York.
Completion of the transaction will provide Emergent with immediate cash, shares, and a secured note, while retaining a royalty interest. For Fairchild, the acquisition adds a significant gold-silver project in Nevada. The outcome hinges on shareholder and regulatory approvals in the coming weeks.
