Lida Resources Inc., Vancouver, B.C., a publicly traded mineral exploration company with a focus on South America, particularly Peru, on July 7 reported that it has entered into a letter of intent (LOI) dated July 6, 2022, with Continental Potash Corp., a private corporation, pursuant to which Lida is proposing to acquire all of the issued and outstanding securities of Continental Potash, whereby the security holders of Continental Potash will become security holders of the combined entity.
Upon completion of the proposed transaction, the resulting issuer will continue to carry on the business of Continental Potash as currently constituted. Lida said the proposed, arm’s length transaction will constitute a reverse takeover of Lida by Continental Potash.
The trading of Lida shares was halted on the Canadian Stock Exchange due to the proposed transaction.
According to Lida, Continental Potash holds an option to acquire up to a 100% interest in certain rights, title, and interests (subject to certain royalties) in the Disley Prospect Area, located 50 kilometers northwest of Regina, Sask., and 215 kilometers southeast of Saskatoon.