UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 9, 2020

_______________________

 

Trilogy Metals Inc.

(Exact name of registrant as specified in its charter)

_______________________

 

British Columbia   001-35447   98-1006991
(State or other jurisdiction of incorporation)   (Commission File Number)   (I.R.S. Employer Identification Number)

 

Suite 1150, 609 Granville Street
Vancouver, British Columbia
Canada, V7Y 1G5

(Address of principal executive offices, including zip code)

 

(604) 638-8088

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.24d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.23e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares TMQ

NYSE American 

Toronto Stock Exchange 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

 

On October 21, 2019, the Company entered into an employment agreement with Jim Gowans as the Company’s Acting President and Chief Executive Officer (the “Employment Agreement”). The term of the Employment Agreement ended February 28, 2020.

 

On April 9, 2020, the Company and Mr. Gowans entered into an amendment to the Employment Agreement, extending the term of the Employment Agreement until May 31, 2020. Mr. Gowans will receive a stock option grant of 275,000 options to purchase common shares in the Company as full compensation for the services during the period of the extension. The grant date of the stock options will be April 13, 2020, and the exercise price will be set at that time in accordance with the terms of the Company’s Equity Incentive Plan. The options will vest one third upon the date of grant, and one third on each of April 30, 2020 and May 31, 2020. In the event that the amended Employment Agreement is terminated prior to May 31, 2020, the unvested options shall vest on a pro rata basis, based on the number of days elapsed in such month and all unvested options shall automatically terminate. All stock options are subject to, and will be made in accordance with, the guidelines of the Toronto Stock Exchange and the Company’s Equity Incentive Plan. Any further stock options grants shall be at the discretion of the Board. All other terms and conditions of the Employment Agreement remain in force.

 

A copy of the amendment to the Employment Agreement is attached as Exhibit 10.1 and the description of the amendment is qualified in its entirety by reference to the amendment.

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits

 

Exhibit Number Description
10.1 Amendment Agreement between Trilogy Metals Inc. and James Gowans, dated April 9, 2020

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  TRILOGY METALS INC.
     
     
Dated: April 9, 2020 By: /s/ Elaine Sanders
    Elaine Sanders, Chief Financial Officer

 

 

 

 

Exhibit 10.1

 

AMENDMENT AGREEMENT

 

BETWEEN:

 

JAMES GOWANS, Businessperson, of 2662-124 B Street, Surrey, British Columbia, V4A 3P1

 

(the “Executive”)

 

AND:

 

TRILOGY METALS INC., a company incorporated pursuant to the laws of British Columbia and having its registered office in British Columbia at Suite 1150 – 609 Granville Street, Vancouver, British Columbia, V6C 1G5

 

(the “Company”)

  

WHEREAS:

 

A.            The Company is a natural resource company currently engaged in the acquisition and exploration of mineral properties;

 

B.            The Company wishes to extend the term of employment of the Executive as Acting President and Chief Executive Officer, on the revised terms and conditions set out in this Agreement;

 

C.            The Company and the Executive desire that the revised terms thereof be formally embodied in this Agreement;

 

THEREFORE, in consideration of the recitals, the following covenants and the payment of one dollar made by each party to the other, the receipt and sufficiency of which are acknowledged by each party, the parties agree on the following terms:

 

1. ENGAGEMENT AND DURATION

 

1.1 Term

 

The Executive's employment pursuant to the terms of this Agreement shall be extend for the period of March 1, 2020 to May 31, 2020 (the “ Extended Term”), unless extended by the mutual written agreement of the parties or unless terminated during the Term as set forth herein.

 

2. DUTIES

 

2.1 Application of Original Employment Agreement

 

Other than as amended by the Amendment Agreement the terms and conditions of the Employment Agreement between the Company and the Executive dated October 21, 2019 (the “Employment Agreement”) shall remain in full force an effect.

 

 

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3. REMUNERATION AND BENEFITS

 

3.1 Additional Option Grant

 

The Board shall grant 275,000 options to purchase common shares in the Company as full compensation for the services provide by the Executive for services rendered during the Extended Term. Upon the date of grant by the Board, 91,666 of those options shall vest. A further 91,667 options shall vest on April 30, 2020 and May 31, 2020. In the event that the Employment Agreement, as amended by the Amendment Agreement, is terminated in accordance with its terms (the “Termination”), the options will cease to vest on the date of Termination and all unvested options shall automatically terminate and be null and void on June 1, 2020. In the event that the Termination occurs prior to April 30, 2020 or May 31, 2020, the options due to vest on April 30, 2020 or May 31, 2020, as the case may be, shall vest on a pro rata basis, based on the number of days elapsed in such month. All options are subject to, and will be made in accordance with, the guidelines of the Toronto Stock Exchange and the Company’s Employee Stock Option Plan.

 

4. TERMINATION

 

4.1 Notice of Termination

 

Section 6.2 of the Employment Agreement is amended such that: (a) either party may terminate the Employment Agreement, as amended by this Amendment Agreement, during the Extended Term on 30 days’ written notice to the to the other party; or (b) the Employment Agreement shall automatically terminate upon the Company appointing a permanent President and Chief Executive Officer of the Company.

 

5. LEGAL ADVICE

 

The Executive hereby represents, warrants and acknowledges to the Company that he has had the opportunity to receive independent legal advice prior to the execution and delivery of this Amendment Agreement.

 

6. ENTIRE AGREEMENT

 

This Amendment Agreement and the Employment Agreement together constitute the entire agreement between the parties hereto and there are no representations or warranties, express or implied, statutory or otherwise other than set forth in the Employment Agreement as amended by this Amendment Agreement and there are no agreements collateral hereto other than as are expressly set forth or referred to herein.  Neither this Amendment Agreement nor the Employment Agreement can be amended or supplemented except by a written agreement executed by all parties hereto.

 

 

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7. COUNTERPARTS

 

This Agreement may be executed in counterparts and such counterparts together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF the parties hereto have executed this Agreement effective as of the 9th day of April, 2020.

 

TRILOGY METALS INC.  
     
/s/ Janice Stairs  
     
Per: JANICE STAIRS  
  CHAIR  

 

/s/ James Gowans  
JAMES GOWANS