ALS will acquire EarthLab’s GoldSpot consulting group, along with Ridgeline and Geotic, for aggregate cash proceeds of $24,000,000 and assumed liabilities of up to $6,000,000.
The sale will reduce R&D and G&A costs by approximately 70% year-over-year and create a lean and autonomous product portfolio of technology-driven mineral exploration and financial tools.
Upon completion, EarthLabs will have approximately $58,000,000 in cash, securities and equity investments, plus royalties and royalty options for 21 projects and a product portfolio that includes Resource Quantamental, CEO.CA and DigiGeoData.
TORONTO, ONTARIO–(Newsfile Corp. – December 1, 2022)– Earth Lab Co., Ltd. (TSXV: SPOT) (OTCQX: SPOFF) (“EarthLabs” or the “Company”), a leading technology company that uses artificial intelligence and data science to transform the mineral discovery process, announced today that it has entered into a previously announced agreement. transfer of its exploration consulting and technology division (“ExplorTech Division”) to ALS GoldSpot Discovery Ltd. (formerly “1377900 BC Ltd.”), a wholly owned subsidiary of ALS Limited (ASX: ALQ) (the “Purchaser”), pursuant to DATE OCTOBER 25, 2022 (“FINAL AGREEMENT”). Headquartered in Brisbane, ALS Limited is the largest provider of laboratory testing, inspection, certification and validation solutions with over 18,000 employees worldwide.
Denis Laviolette, Executive Chairman and President of EarthLabs, said: “This sale will accelerate the building of a leaner, less capital and automatable product portfolio underpinned by a quantamental approach. We continue to grow based on the clear value-creating momentum we have gained since then, up to six years ago.”
The ExplorTech division included Ridgeline Exploration Services Inc. (“Ridgeline Exploration”) and Geotic Inc. (“Geotic”), along with our GoldSpot Discovery consulting group. In consideration of the sale, the Company received aggregate cash proceeds of $24,000,000 and ALS assumed up to $6,000,000 of Company debt. All of these are subject to post-closing working capital adjustments. In connection with the Transaction, the parties have entered into a Transition Services Agreement for the timely and efficient transfer of the business of the ExplorTech Division, and certain employees of EarthLabs will not compete with or solicit the Purchaser. I have a contract not to do it.
Upon closing of the transaction, EarthLabs will have approximately $58,000,000 in cash and investments, including EarthLabs’ 27.5% equity investment in Golden Planet Mining Corp. and a net smelter revenue royalty (“NSR”). , and the option to acquire NSR on 21 properties, its Resource Quantamental (“RQ”) Technology, and its wholly owned subsidiaries, CEO.CA Technologies Ltd. (“CEO.CA”) and DigiGeoData Inc. (“DigiGeoData”). ) its operation. Going forward, EarthLabs will keep all investments and royalties earned to date and will continue to focus on the development and operation of his flagship RQ technology, his CEO.CA and his DigiGeoData. For more information on EarthLabs’ business and its operations, please refer to the company’s press release dated October 25, 2022, available on his SEDAR at www.sedar.com.
About Earth Lab
EarthLabs Inc. (TSXV:SPOT) (OTCQX:SPOFF) is a technology company committed to revolutionizing the future of global mineral exploration with a complete suite of data and knowledge-driven SaaS tools and services. EarthLabs represents a collection of industry-leading earth modeling, geological data management, and specialized financial products that help both mining companies and mining investors make better decisions.
For more information, please contact:
Chairman and President
Earth Lab Co., Ltd.
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Cautionary Note Regarding Forward-Looking Statements
No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein. This news release contains risks, uncertainties and the potential for actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. It includes forward-looking information, including other factors that may Forward-looking information in this news release includes, but is not limited to, our purpose, goals and future plans, including our future plans with respect to RQ, CEO.CA and DigiGeoData holdings. not. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs that differ materially from estimates, the tentative nature of test results, delays in obtaining or Including but not limited to retrieval failures. or other project approvals, uncertainty regarding the availability and cost of future required financing, stock market changes, inflation, commodity price volatility, delays in project development, and the mineral exploration and development industry; other associated risks, risks described in our public documents filed with SEDAR; Although we believe that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, we make no such assumptions that apply only as of the date of this news release. You should not place undue reliance on information. Such events are assumed to occur within the disclosed time or not at all. We disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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