Glen Eagle Resources Inc. has entered into a definitive share purchase agreement to sell its wholly-owned Honduran subsidiary, Cobra Oro Honduras S.A., to Canaan Minerals S. De R.L. for a total purchase price of US$2,850,000 payable via a one-time cash payment upon closing.

The transaction represents a complete divestment of the Cobra Oro subsidiary and shifts the asset away from a previous arrangement. Glen Eagle previously pursued an option agreement for the Cobra Oro processing plant and subsidiary with Gold Max, S DE R.L. that was initiated in September 2024, before transitioning to the current definitive share purchase agreement with Canaan Minerals.

Under the terms of the new agreement, the buyer will acquire all issued and outstanding shares of Cobra Oro. In addition to the purchase price, Canaan Minerals is required to settle certain outstanding obligations of Cobra Oro up to US$600,000 by no later than October 30, 2026.

At the closing of the transaction, the amount of US$300,000 will be retained in a separate escrow account for a period of 12 months as security for any post-closing claims arising under the share purchase agreement. In connection with the transaction, Glen Eagle will pay a finder’s fee to an arm's length finder equal to 3.5% of the total gross proceeds actually received from the purchaser.

The current management of Glen Eagle and Cobra Oro will continue to manage and operate the subsidiary's assets pending the completion of the deal. Glen Eagle expects the transaction to close during the fourth quarter of 2026.

Completion of the sale remains subject to several conditions, including the receipt of cash payments, the continued compliance of Cobra Oro with the applicable Honduran regulatory regime, and the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange under Policy 5.3 governing acquisitions and dispositions of non-cash assets.

Read the full announcement: GLEN EAGLE RESOURCES INC. ANNOUNCES ENTRY TO DEFINITIVE AGREEMENT REGARDING SALE OF ITS COBRA ORO ENTITY