Palladium One Commences Metallurgical Study, Reports Petrographic Study and Announces Flow-Through Private Placement for the Tyko Sulphide Ni-Cu-PGE Project
Vancouver, British Columbia--(Newsfile Corp. - October 21, 2019) - Palladium One Mining Inc. (TSXV: PDM) (FSE: 7N11) (the "Company" or "Palladium One") is pleased to announce that it has submitted a sample collected from it's Tyko Ni-Cu-PGE project to Activation Laboratories for metallurgical testing. This testing represents the first metallurgical work done on the project and will assess the floatation characteristics of mineralization.
The Tyko project, located in Ontario, Canada. is known to have high tenor sulphide mineralization (see press release June 8, 2016).
The metallurgical sample was collected from hole TK-16-002 from the RJ zone which was drilled by the Company in 2016. This hole intersected 1.04% Ni and 0.23% Cu over 16.19 meters (See new release April 12, 2016). The sample consists of ~20kg of drill core and represents a 50/50 mixture of primary pyroxenite and remobilized granite hosted sulphide mineralization.
Petrographic analysis indicates that the Tyko sulphide mineralization has been significantly influenced by contact metamorphism associated with the intrusion of the Black Pic tonalitic batholith and Dotted Lake granitic pluton. This has resulted in the primary pyrrhotite-pentlandite-chalcopyrite sulphide assemblage being modified to a predominantly pyrite-millerite-chalcopyrite assemblage. In addition, sulphides have been locally remobilized into the adjacent granite rocks occurring as biotite-rich veins of semi-massive to massive sulphide.
Derrick Weyrauch, Interim President and CEO stated, "The high tenor of the sulphide suggests a high-value flotation concentrate could be produced, as such we look forward to the results of this initial metallurgical study.
The Company is initiating a prospecting and mapping program to be conducted on the Tyko project later this month. This program will focus on high priority geophysical targets identified in 2016 that were never followed up on, as well as the first work on the new Shabotik showing (see news release August 19, 2019)"
Flow-Through Private Placement
The Company has arranged a C$0.15 million non-brokered flow-through private placement (the "Offering"). Under the terms of the Offering the Company has agreed to issue up to 1,500,000 Units of the Company at a price of C$0.10 per Unit. Each Unit is comprised of one flow-through common share and one full warrant. Each warrant is exercisable for one ordinary common share of the Company at a price of C$0.12 per share for 24 months from closing. The Warrants are subject to an accelerated expiry provision whereby if the closing price of the Company's common shares on the TSX-Venture Exchange ("TSX-V") is C$0.20 per share or more for ten (10) consecutive trading days, the Company, will have the right at any time thereafter during the remaining term of the Warrants to accelerate the expiry of the Warrants by giving notice, via news release.
The gross proceeds of the Offering will be used by the Company to incur eligible Canadian exploration expenses (as defined in the Income Tax Act (Canada)) through the exploration of the Company's properties located in the province of Ontario.
Closing of the Offering is subject to certain conditions including the receipt of regulatory approvals, such as the acceptance of the Offering by the TSX-V. The Offering is anticipated to close in two tranches. The securities issued under Offering will be subject to a four month hold period from the Closing Date under applicable securities laws in Canada.
The Company closed a first tranche of the financing on October 18, 2019 and issued 750,000 Units at C$0.10 for gross proceeds of C$75,000.
The Company did not pay any Finder's Fees with respect to the funds raised in the first tranche.
About Tyko Ni-Cu-PGE Project
The Tyko Ni-Cu-PGE project, is located ~65km northeast of Marathon Ontario, Canada. The Tyko project is an early stage, high sulphide tenor, nickel focused project with recent drill hole intercepts returning up to 1.06 Ni over 6.22 m including 4.71% Ni over 0.87m in hole TK-16-010 (see press release dated June 8, 2016).
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo, Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.
About Palladium One:
Palladium One Mining Inc. is a PGE, nickel, copper exploration and development company. Its assets consist of the palladium dominant, Lantinen Koillismaa ("LK") PGE-Cu-Ni project, located in north-central Finland and the Tyko Ni-Cu-PGE property, near Marathon, Ontario, Canada.
The Kaukua deposit of the LK project hosts 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* ("palladium equivalent") contained in 11 million tonnes (@ 0.81g/t Pd, 0.27g/t Pt, 0.09g/t Au, (1.17g/t PGE), 0.15% Cu & 0.09% Ni), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq contained in 11 million tonnes (@ 0.64g/t Pd, 0.20g/t Pt, 0.08g/t Au (0.92g/t PGE), 0.13% Cu, & 0.08% Ni), (see press release September 9, 2019). Kaukua is open for expansion, while the Kaukua South, Murtolampi and Haukiaho mineralized zones require systematic exploration via diamond drilling to follow up mineralized drill intercepts.
*Pd_Eq is calculated using the following metal prices (in USD) of $1,100/oz for Pd, $950/oz for Pt, $1,300/oz for Au, $6,614/t for Cu and $15,432/t for Ni.
ON BEHALF OF THE BOARD:
President & CEO, Director
For further information contact:
Derrick Weyrauch, President & CEO
Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in gold and other commodity prices; title matters; 6 environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
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