Palamina Announces the Acquisition of Shares in Helio Resource Corp.
Toronto, Ontario--(Newsfile Corp. - September 19, 2019) - Palamina Corp. (TSXV: PA) ("Palamina" or the "Company") advises that it has filed an Early Warning Report in connection with the issuance by Helio Resource Corp. (TSXV: HRC) ("Helio") to Palamina of common shares ("Common Shares") in the capital of Helio as consideration for Helio acquiring all of Palamina's interests in the Gaban Gold Project and Tinka IOCG Project in Peru (the "Transaction"). Pursuant to the Transaction, Palamina will receive a total of 10 million Common Shares of Helio ("Helio Shares") and a 2% Net Smelter Return Royalty ("NSR") on each project. Helio retains the right to buy back 1% of the NSR for $1,000,000 per project. A total of 5,000,000 Helio Shares have been issued to Palamina, with the balance to be issued within two years of closing on completion of future equity financings by Helio or by way of Helio shareholder approval.
Helio is a reporting issuer whose Common Shares are listed on the TSX Venture Exchange, having its head office at Suite 580 - 625 Howe Street, Vancouver, British Columbia V6C 2T6. Palamina did not previously hold any securities of Helio. The 5,000,000 Helio Shares now held by Palamina represent approximately 15.4% of Helio's issued and outstanding Common Shares. Palamina did not act jointly with any other party in acquiring the Common Shares.
This news release is being issued as required by National Instrument 62-104 - Take-Over Bids and Issuer Bids and relates to Palamina, whose head office is located at 145 King Street West, Suite 2870, Toronto, Ontario, M5H 1J8. A copy of the Early Warning Report can be obtained at www.sedar.com under Helio's SEDAR profile.
Palamina holds the application and mining rights to four gold projects in south-eastern Peru in the Puno Orogenic Gold Belt (POGB), a silver copper project in the Santa Lucia district and two copper-gold projects in Southern Peru. In September 2019, Palamina completed the sale of its Gaban Gold and Tinka I.O.C.G Projects for 10,000,000 shares of Helio Resources Corp. and a 2% NSR per project. Palamina has 36,228,636 shares outstanding and trades on the TSX Venture Exchange under the symbol PA.
FOR FURTHER INFORMATION PLEASE CONTACT:
Andrew Thomson, President
Phone: (416) 987-0722 or visit www.palamina.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/47955