Panther Metals PLC - Option Agreement to Acquire Gold Properties in Canada
PR Newswire
London, July 12
12 July 2018
PANTHER METALS PLC
("Panther Metals" or the "Company")
OPTION AGREEMENT TO ACQUIRE GOLD EXPLORATION PROPERTIES IN CANADA
PANTHER METALS ANNOUNCES SIGNING OF OPTION AGREEMENT TO ACQUIRE PORTFOLIO OF GROWTH STAGE GOLD EXPLORATION PROPERTIES IN ONTARIO
Panther Metals PLC "(Panther" or the "Company") (NEX:PALM), the NEX Exchange Growth Market natural resource investing company is pleased to announce the signing of an option agreement to acquire a portfolio of prospective growth stage exploration gold and volcanogenic massive sulphide ('VMS') style properties in Ontario, Canada.
The Bear Lake Project is a gold enriched VMS style deposit that has a limited history of exploration in a region that has established infrastructure and nearby mine development and mine operation in Ontario Canada, one of the world's most accessible and politically safe jurisdictions.
Highlights:
Bear Lake Project (the "Project") consists of a package of three contiguous early stage gold and base metal exploration tenements (Little Bear Lake, Bear Lake & Schreiber Pyramid) located in north-western Ontario, Canada.
The Bear Lake Project area consists a total of 69 Claim Units equivalent to 12.14km2 located in the Schreiber-Hemlo Greenstone Belt, 95 km west of Hemlo and 155 km east of Thunder Bay.
The Project lies upon the Hemlo-Schreiber Greenstone Belt and is centred approximately 4km north of the town of Schreiber, 15km SE of the former Winston Lake Zinc Mine.
The Project is prospective for both lode gold and VMS style mineralisation.
Historical exploration has yielded results from bulk sampling at the Schreiber Pyramid averaging 17.6g/t gold and from drilling up to 19.6% zinc and 4.6% copper, from near surface. At Little Bear channel sampling yielded assays up to 53.7g/t gold.
The total potential consideration for the acquisition of Bear Lake Project is C$133,000 (or £76,715) comprising C$33,000 in cash and the issue of Panther Metals ordinary shares with a value of C$100,000 (or £57,440 to be issued at a fixed price of £0.003/share or 19,146,666 new ordinary PALM shares).
Option Payment of C$30,000 (consisting C$15,000 cash and C$15,000 shares (the "Option Shares") to be issued at a fixed price of £0.003/share or 2,872,000 new ordinary PALM shares) has been paid to the vendors which is non-refundable but deductible from above total consideration.
Further detailed updates in respect of each property within the Bear Lake project will be provided to the market in the coming weeks.
Mitchell Smith, Executive Officer of Panther Metals commented:
"We are delighted to have reached this option agreement to acquire the Bear Lake Project portfolio as Panther's first investment into the metals and mining sector.
This transformative transaction is a major milestone for Panther, positioning the Company with a pipeline of growth stage assets having limited yet very promising past exploration and significant upside opportunity.
Based on our interpretation of the structure, geology and location alongside a proven regional gold belt, the property clearly has tremendous potential.
We look forward to announcing further details and the exploration plans subject to completing the due diligence process."
Bear Lake Project Background
The Bear Lake Project area consists a total of 69 Claim Units equivalent to 12.14km2 located in the Schreiber-Hemlo Greenstone Belt, 95 km west of Hemlo and 155 km east of Thunder Bay.
The Project is located in the Province of Ontario which is a mining friendly jurisdiction with an established permitting framework. The Fraser Institute 2017 Investment Attractiveness Index ranked Ontario 3rd /12 by Canadian Province and 7th /91 globally.
The Project is vended by Superior Prospects Inc. a private Canadian company which has been active in the Schreiber-Hemlo greenstone belt since the 1980s.
The Project consists of three properties: Schreiber Pyramid, Little Bear and Big Bear.
The Schreiber Pyramid property contains a number of high grade precious and base metal occurrences.
Historical bulk sampling reported 150t averaging 17.6g/t Au.
Historical drill Intersections include 0.55m @ 19.2% Zn & 4.6% Cu from 15.2m depth.
The Little Bear surface channel sampling, at four dispersed points along the 1.6km long gold trend, yielded assays:
West: 6m @ 1.5g/t Au including 2m @ 3.3g/t Au
Area 1:53.7g/t Au & 19.25g/t Ag
Area 2: 3.8g/t Au (200m north of Area 1);
Area 3: 18.2g/t Au & 1.03g/t Ag in soil (SE of Area 1).
The Big Bear property lies directly to the east of Little Bear and over the possible strike continuation of the Little Bear gold trend.
Option Agreement Terms
Having agreed an option agreement with the vendors, Panther Metals will now carry out further due diligence on the Project which will need to be completed before 8 weeks from signing.
The total potential consideration for the acquisition of Bear Lake Project is C$133,000 (or £76,715) comprising C$33,000 in cash and the issue of Panther Metals ordinary shares with a value of C$100,000 (or £57,440 to be issued at a fixed price of £0.003/share or 19,146,666 new ordinary PALM shares).
Option Payment of C$30,000 (consisting C$15,000 cash and C$15,000 shares ( the "Option Shares") to be issued at a fixed price of £0.003/share or 2,872,000 new ordinary shares) has been paid to the vendors which is non-refundable but deductible from above total consideration.
The balance of the consideration will be paid to the vendors, following completion of Panther's due diligence.
Vendors are subject to a 6-month lock in on all securities issued and to sales volume restrictions thereafter.
Admission of Option Shares and Total Voting Rights
Admission is expected to occur on or around 18 July 2018. Following admission of the Option Shares, issued ordinary share capital will comprise 500,330,336 ordinary shares of 0.01 pence. This number will represent the total voting rights in the Company, and, following admission of both the placing and subscription shares, may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on the Nex Exchange Growth Market.
Competent Person Report
The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist who acts as the Competent Person. Mr O'Reilly is a Non-Executive Director of Panther Metals PLC and a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Panther Metals PLC to provide technical support.
The Directors of the Company accept responsibility for the contents of this announcement.
For further information on the Company:
The Company PANTHER METALS PLC Darren Hazelwood, Non-Executive Director Mitchell Smith, Chief Executive Officer | + 44 (0)7971 957 685 + 1 (604) 209 6678 info@panthermetals.co.uk |
NEX Exchange Corporate Adviser PETERHOUSE CAPITAL LIMITED Mark Anwyl Guy Miller | +44 (0) 7469 0930 |
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