1. Emerita intends to acquire WMS's Spanish subsidiary via a LOI. 2. Emerita's acquisition requires CAD$150,000 cash and CAD$250,000 in shares. 3. Approval from TSX Venture and closing conditions are still pending. 4. The company's main asset remains the Penedela gold project. 5. CEO Greg Duras is also CFO at Emerita, indicating close ties.
The prospect of acquisition suggests potential value growth, similar to past acquisition boosts.
The article discusses a pivotal LOI that could impact stock sentiment and valuation.
The market may react quickly to news of acquisition steps and conditions.
Following a recent press release issued by Emerita Resources Corp. ("Emerita"), Western Metallica Resources Corp. (TSXV:WMS) "Western Metallica" or the "Company") confirms that on August 18, 2025 it entered into a non-binding letter of intent (the "LOI") with Emerita pursuant to which it is proposed that Emerita would acquire Western Metallica's Spanish subsidiary Western Metallica, S.L. ("WMS Spain"), which holds 100% ownership of the Nueva Celti Project ("Nueva Celti"), located in the province of Seville, Andalusia, Spain.
Pursuant to the LOI, in order to acquire a 100% interest in WMS Spain, Emerita must pay to Western Metallica (i) a CAD$150,000 deposit in cash; and (ii) $250,000 to be settled in Emerita shares using the closing price per Emerita share on the day prior to the execution of a binding share purchase agreement between the parties. The terms of the final agreement may differ. This transaction remains subject to obtaining a three-year extension to the exploration permit(s) on the Nueva Celti concession, entering into a binding share purchase agreement, TSX Venture Exchange approval including disinterested shareholders' approval and evidence of value demonstration if necessary, as well as other customary closing conditions.
Emerita is considered to be a non-arm's length party to the Company as Greg Duras, the Company's CEO, is Emerita's Chief Financial Officer.
There is no assurance that the Company will be able to enter into a binding agreement or to meet the closing conditions.
The Company's principal asset remains Penedela gold project in Asturias and a renewal application has been submitted for an additional 3 years.
About Western Metallica Resources Corp.
Western Metallica is an Ontario registered company with its head office in Toronto, Ontario, trading on the TSXV under symbol WMS. Western Metallica is in the business of mineral resource exploration. Its project interests include its 100% owned Nueva Celti Copper Property in Andalusia, Spain, and three other gold projects located in the "Navelgas Gold Belt" in Asturias, Spain (Penedela, Valledor and Sierra Alta). Further information can be found at: www.westernmetallicacorp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this press release related to the terminated Debt Settlement and the bridge loan are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the non-binding LOI and the likelihood that a binding agreement will be reached and the receipt of all required approval, including approval of the TSXV. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Company's ability to complete the Debt Settlement, including the risk that the Debt Settlement may not be completed as expected or at all, that the TSXV may not approve the Debt Settlement and such other factors beyond the control of the Company. Such forward looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
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Western Metallica Resources Corp.
Gregory Duras
Chief Executive Officer
+1 416 576-3136
Email: gduras@westernmetallica.com