Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 24

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 4
Chunk 24
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ITEM 4. INFORMATION ON THE COMPANY

Business Overview

4. A. History and Development of the Company

Principal Business and Corporate History

Foremost Clean Energy Ltd. (formerly Foremost Lithium Resource & Technology Ltd.) was incorporated under the British Columbia Business Corporations Act (the “ BCBCA”) and the laws of the Province of British Columbia as FAR Resources Ltd. on July 7, 2005 (Number: BC0729352). The Company changed its name to Foremost Lithium Resource & Technology Ltd. on January 4, 2022, and later changed its name to Foremost Clean Energy Ltd. on September 30, 2024. The Company has no subsidiaries. The Company had held certain underlying royalties, a 100% ownership and option interest in certain claims in the Winston Gold and Silver Property located in Sierra County, New Mexico, USA (the “ Winston Property”) within a previous wholly-owned subsidiary, Sierra Gold & Silver Ltd. (“ Sierra”). On July 19, 2024, Rio Grande Resource Ltd. (“ Rio Grande”) was incorporated under the laws of British Columbia solely for the purpose to effect a Plan Arrangement under British Columbia Law(the “ Arrangement”). Pursuant to the Arrangement, Foremost transferred to Rio Grande all of the issued and outstanding shares of Sierra, resulting in the Winston Property being wholly-owned by Rio Grande, and Sierra becoming a subsidiary of Rio Grande, and Rio Grande completing its own public listing of its shares in Canada. The Arrangement was completed on January 31, 2025 (the “ Effective Date”).

Additional Terms of the Arrangement

The total purchase consideration for the acquisition was $2,604,781, consisting of the fair value of 25,827,349 common shares of Rio Grande ($2,453,598) and 9,281,236 warrants ($151,183). This consideration was allocated to exploration and evaluation assets ($3,172,672), less a royalty payable ($366,075) and an income tax penalty payable ($201,816), resulting in net assets assumed of $2,604,781.

As conditions to completing the Arrangement, Rio Grande issued two promissory notes: the first was a $677,450 promissory note (the “ Rio Grande Promissory Note”) to related parties Jason Barnard and Christina Barnard, due on or before November 5, 2027, bearing interest at 8.956%; the second was a $520,000 promiss