The TSX Venture Exchange has accepted for filing a share exchange agreement dated Oct. 6, 2023, between Jinhua Capital Corp. and an arm's-length party. Pursuant to the terms of the agreement, the company may acquire 1440843 B.C., which holds a 100-per-cent legal and beneficial interest in the Indigo graphite mineral licences. The Indigo property comprises 32 mining claims covering approximately 1,892.5 hectares in the Saint-Michel-des-Saints municipality of Quebec. By way of consideration, the company will issue 8.5 million shares at a deemed price of seven cents per share to the vendor's shareholders in exchange for 100 per cent of the shares of the vendor. The property is subject to a 3-per-cent net smelter return (NSR) royalty in favour of an arm's-length party payable on the Indigo claims. One-third of the NSR royalty or 1 per cent can be purchased by the company for $2-million. In addition, in the event that Jinhua commissions a National Instrument 43-101 technical report to determine the size of the graphite resource, if any, on the Indigo claims, an arm's-length party will be entitled to cash consideration within 31 calendar days of completion of the technical report up to a maximum amount of $6.25-million.

For further details, please refer to the company's news release dated Oct. 6, 2023.