MAACKK Capital Corp. and URG Gold Corp. Enter into Letter of Intent to Combine and Become Listed Issuer
September 21, 2020 at 17:00 PM EDT
Calgary, Alberta--(Newsfile Corp. - September 21, 2020) - MAACKK Capital Corp. ("MAACKK") and URG Gold Corp. ("URG") are pleased to announce the signing of a binding letter of intent (the "LOI") for a business combination between the two companies that will result in a reverse take-over of MAACKK by URG and the listing for trading of the shares of the resulting issuer on a recognized public stock exchange in Canada (the "Transaction"). The resulting issuer plans to change its name to Goldmax Resources Inc. The LOI is subject to a number of conditions including URG exercising its option to purchase the McAdams Creek Mining Claims, the parties executing a definitive agreement, URG completing a $2.0 million private placement, regulatory, corporate and shareholder approvals and other conditions customary for the Transaction.
URG's option to purchase the McAdams Mine calls for payments to the seller of US$3,500,000 over a five (5) year period. URG is also obligated to incur a minimum of $550,000 of exploration expenditures as defined in the 43-101 Technical Report within the first 12-months of exercising the purchase option.
Under the terms of the LOI, MAACKK shall issue one MAACKK common share for each issued and outstanding URG common share. As of the date hereof, URG has 20,000,000 common shares issued and outstanding prior to the planned $2,000,000 financing and zero securities exercisable or exchangeable for, or convertible into, or other rights to acquire, URG common share.
The LOI is subject to a number of conditions including URG exercising its option to purchase the McAdams Mine, the parties executing a definitive agreement, URG completing a $2.0 million private placement, regulatory, corporate and shareholder approvals and other conditions customary for the Transaction.
The Transaction is expected to close on or before December 31, 2020.
The Resulting Issuer
MAACKK and URG shall file listing documents with a recognized public stock exchange in Canada to list the shares of the Resulting Issuer for public trading.
About MAACKK Capital Corp.
Information related to URG and the McAdams Mine were provided by URG and have not been independently verified by MAACKK.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Cheung, Chief Executive Officer and Chief Financial Officer
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