Exploranciones de SL Cordero, S.A. de C.V. entered into a binding letter of intent to acquire Savanna Capital Corp. (TSXV : SAC.P) for CAD 1.5 million in a reverse merger transaction.

Exploranciones de SL Cordero, S.A. de C.V. entered into a binding letter of intent to acquire Savanna Capital Corp. (TSXV : SAC.P) for CAD 1.5 million in a reverse merger transaction on January 27, 2022. Exploranciones de SL Cordero, S.A. de C.V. entered a definitive agreement to acquire Savanna Capital Corp.

in a reverse merger transaction on March 1, 2022. As part of the consideration, San Luis common shares will be exchanged for Savanna common shares on a one-to-one basis. The existing shareholders of San Luis would own 30 million shares of Savanna Capital.

Upon completion of the Transaction, it is the intention of the parties that the Resulting Issuer will continue to focus on the current business and affairs of San Luis. Savanna will change its name to “Plata Corp.” At closing of the transaction, all of the existing directors and officers of Savanna will resign and the Board of Directors of the Resulting Issuer shall be composed of a minimum three and a maximum of ten Directors. Following the completion of the Transaction, the Resulting Issuer will be led by: Kenny Choi, CEO; Ryan Ptolemy, CFO; and Aaron Atin, Corporate Secretary.

If this Agreement is terminated by Savanna in the circumstances described in Section 10.1(d)(iv), then San Luis Ontario shall within one Business Day of the date of termination pay to Savanna a break fee of CAD 100,000. If this Agreement is terminated by San Luis Ontario in the circumstances described in Section 10.1(c)(iv), then Savanna shall within one Business Day of the date of termination pay to San Luis Ontario a break fee of CAD 100,000. The Resulting Issuer's board of directors is expected to consist of four directors.

The obligations of Savanna and San Luis pursuant to the Letter Agreement shall terminate in certain specified circumstances, including in the event that the Definitive Agreement is not entered into on or before February 28, 2022 (unless extended by mutual agreement of the parties). The proposed Transaction is subject to requisite regulatory approvals, Savanna and Exploranciones de SL Cordero shall obtain receipt of requisite shareholder approvals, completion of the San Luis Offering, the common shares of the resulting issuer having been approved for listing on the exchange, the election of the directors of the resulting issuer to replace the current directors of Savanna immediately following the completion of the proposed Transaction and standard closing conditions, including the approval of the directors of each of Savanna and San Luis of the Definitive Agreement. The shareholders of San Luis ON unanimously approved the transaction effective March 3, 2022.

As of November 8, 2022, Savanna and San Luis have extended the date by which completion of the transaction must occur from May 31, 2022 to May 31, 2023.