Pancon Agrees to Sell Its Four Ontario Battery Metals Projects
Toronto, Ontario--(Newsfile Corp. - June 23, 2020) - Pancontinental Resources Corporation (TSXV: PUC) ("Pancon" or the "Company") has signed a Purchase Agreement ("Agreement") with Tempus Resources Inc. ("Tempus"), a private Canadian company incorporated in Ontario, whereby Tempus can own up to a 100% interest in Pancon's Montcalm, Nova, Gambler and St. Laurent nickel-copper-cobalt exploration projects ("Projects") in Northern Ontario. Pancon acquired and explored the Projects in 2018-2019.
Pancon President and CEO, Layton Croft, stated: "Since being awarded exclusive rights to explore and purchase the former Brewer Gold Mine property located 12 km along trend from the operating Haile Gold Mine in South Carolina, USA, Pancon's sole focus is now Carolina Gold. As a result, we have agreed to sell our four high quality nickel-copper-cobalt exploration Projects. We are very pleased to partner with Tempus Resources, a private company whose owners have been and remain Pancon shareholders, and who fully understand the significant value potential of these Ontario battery metals assets."
According to the Agreement, dated June 22, 2020, Tempus made a C$100,000 non-refundable cash payment upon signing and will make another non-refundable cash payment of C$100,000 by September 20, 2020. By June 20, 2021, Tempus will make a final cash payment of C$800,000. Meantime Pancon will keep all four Projects in good standing by making all required option payments. Once C$1 million has been paid by Tempus and Pancon has fulfilled all obligations of the current respective option agreements, Tempus will own an 80% interest in all four projects, and Pancon will retain a 20% free carry interest.
After Tempus spends C$2 million to explore one or more of the Projects, Tempus' interest in the Projects increases to 100% and Pancon retains a 1.5% net smelter royalty (NSR) on each of the four Projects. Tempus can pay Pancon C$1 million cash to buy back 1% of the St. Laurent Project, with Pancon retaining a 0.5% NSR. Similarly, Tempus can pay Pancon a separate C$1 million cash to buy back 1% of the other three projects (Montcalm, Gambler and Nova Projects), with Pancon retaining 0.5% NSR for each project.
Pancon is a Canadian junior mining company focused on exploring the prolific and underexplored Carolina Slate Belt in South Carolina, USA. In January 2020, Pancon won the exclusive right to explore the former Brewer Gold Mine. Between 1987-1995, Brewer produced 178,000 ounces of oxide gold from open pits that extended to 50-metre depths, where copper and gold-rich sulphides were exposed but could not be processed by the oxide heap leach processing facility. Brewer is a high sulphidation system driven by a sub-volcanic intrusive and possibly containing a large copper-gold porphyry system at depth, as indicated by: widely known prospective geology, including diatreme breccias; associated high sulphidation alteration; gold and copper mineralization; and geophysics. Pancon's 100%-owned Jefferson Gold Project nearly surrounds the former Brewer Gold Mine property, and both Jefferson and Brewer are located 12 km along trend northeast from the producing Haile Gold Mine, which produced 146,100 ounces of gold in 2019. In addition, Pancon has four nickel-copper-cobalt exploration projects in Northern Ontario, surrounding or near producing and former mines.
For further information, please contact:
Jeanny So, Manager, External Relations
Neither 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.
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/58342