Emergent Metals Corp. has completed the sale of its Golden Arrow Property in Nevada to Fairchild Gold Corp. Under the completed transaction, Emergent received US$600,000 in aggregate cash payments alongside 12,500,000 common shares of Fairchild at a deemed price of CDN$0.055 per share.

The transaction consideration also includes a US$3.5 million non-convertible senior secured note carrying an 8.5% annual interest rate over a five-year term, backed by a first-ranking security interest over the property. Emergent additionally retains a 0.5% net smelter return royalty on Golden Arrow. Depending on the timing of note interest and principal payments, the total package holds an estimated value between US$4.0 million and US$7.0 million.

"This is a layered transaction that includes cash, shares, and senior secured note components. In the short term, Emergent has received US$600,000 in cash and 12,500,000 Fairchild shares that will appear on the Company’s balance sheet. In the medium term, the Company will receive ongoing interest payments on the Note twice per year and will have the opportunity to monetize the Fairchild shares. In the long term, if Fairchild is successful in advancing Golden Arrow, the Company will receive US$3.0 million to US$5.0 million from the repayment principal associated with the Note, depending on the timing. Long-term potential also included the opportunity for Fairchild’s shares to increase in value."

— David Watkinson, President and CEO

The structure of the senior secured note includes provisions for an early repayment bonus. If Fairchild repays at least US$500,000 immediately from a financing of at least US$3.0 million and clears an additional US$2.5 million plus accrued interest within six months, Emergent will waive the remaining US$500,000 of the principal. Conversely, the principal steps up automatically to US$4.0 million if unpaid after three years and US$5.0 million if unpaid after four years. Fairchild also has buyout options to acquire the 0.5% royalty for US$1.0 million before the fourth anniversary or US$1.5 million between the fourth and seventh anniversaries.

The divestment aligns with Emergent’s project accelerator business model, which focuses on acquiring quality mineral assets, adding value through exploration, and monetising them through sales, joint ventures, or royalties. In October 2025, Emergent completed the sale of 27 unpatented lode mineral claims at its New York Canyon property to Lahontan Gold Corp.

Emergent expects to receive final approval of the Transaction from the TSX Venture Exchange.

Read the full announcement: Emergent Metals Completes the Sale of its Golden Arrow Property to Fairchild Gold