Pedro Resources Announces Share Purchase Agreement with Voisey's Bay
Toronto, Ontario--(Newsfile Corp. - November 27, 2020) - Pedro Resources Ltd. (TSXV: PED.H) ("Pedro" or the "Company") is pleased to announce that it has entered into an arm's length share purchase agreement dated November 27, 2020 (the "Share Purchase Agreement"), with Voisey's Bay West Nickel & Cobalt Corp. ("Voisey's Bay") and the shareholders of Voisey's Bay (collectively, the "Vendors"), pursuant to which the Company has agreed to acquire all of the issued and outstanding shares of Voisey's Bay (the "Transaction"). Voisey's Bay is a private company formed under the laws of Ontario, whose sole asset is a 100% interest in 13 prospective mineral licenses, comprising 721 claims (18,025 hectares) (the "Property"), 4.5 km south of Vale's Voisey's Bay Mine in the province of Newfoundland and Labrador, Canada (the "Vale's Property").
As consideration for the Transaction, the Company will issue an aggregate of 8,000,000 common shares in the capital of the Company (the "Consideration Shares") at a deemed price of $0.08 per Consideration Share to the Vendors issued in six (6) equal allotments over a period of three (3) years, and cash payments of $165,000 payable on each of the first three anniversaries of the closing of the Transaction. All securities issued pursuant to the Acquisition will be subject to a statutory hold period of four months and one day from the issuance thereof, as applicable, in accordance with applicable securities laws.
Vale's Property has been in production since 2005 as an open pit (Ovoid) with underground operations (Eastern Deeps and Reid Brook) to commence 2021. The mine has proven and probable geological resources (2018) of 32.4 million tonnes ore grading 2.13 % Ni (691 kilotonnes (kt)), 0.96% Cu (312 kt) and 0.13% Co (42 kt). The Company cautions investors that mineralization hosted on nearby or adjacent properties is not necessarily indicative of mineralization hosted on the Property.
The Property was proposed by a consortium of former senior Vale employees and consultants who had worked on the Property deposit and is based on regional compilations of geological and geophysical data incorporating the most recent Vale's Property models. Portions of package had been explored in a reconnaissance manner between 1995 and 1998.
As part of due diligence for the transaction, the Company commissioned a NI 43-101 technical report prepared by Mark Fekete, P. Geo and qualified person, entitled "Technical Report on the Voisey's Bay West, Labrador NTS Sheets 042D01, D02 and D07 56°17' N. Lat., 062°50' W. Long., for Pedro Resources Ltd.". Mr. Fekete's report noted that, although at a preliminary stage, the property merits additional exploration based:
- The Property is located in an area with lithologies and regional structures favourable for Vale's Property-type Ni-Cu-Co deposits but has not had seen any property-wide systematic mapping or rock sampling
- Compilations of historic airborne magnetic and electromagnetic surveys have identified numerous geophysical anomalies that remain untested by surface sampling or drilling
- Rock types favourable for the style of mineralization typical of the Vale's Property deposits have been identified on the Property.
Both nickel and cobalt are key components in clean energy technologies particularly in the production of electric vehicles (EV's). Brian Stecyk, Chief Executive Officer and Director, commented, "Pedro is very fortunate to be able to acquire a property of this magnitude, in such close proximity to a major producer, and with the potential to provide metals that will be so critical for a global Green Future."
The completion of the Acquisition remains subject to the approval of all regulatory and other approvals, including the approval of the TSXV.
Qualified Persons Review
The technical and scientific information contained within this news release have been reviewed and approved by Dr. Derek Wilton, P.Geo., a consultant to Pedro and a Qualified Person as defined by National Instrument 43-101 policy. The Qualified Person has not completed sufficient work to verify the historic information on the Property, particularly the indicated and inferred resources; however given the quality of the historic work and the reputation of crosshair the Company believes the historical resources estimates to be both relevant and reliable. The information provides an indication of the exploration potential of the Property but may not be representative of expected results.
About Pedro Resources Ltd.
Pedro Resources Ltd. is a Canadian exploration company listed on the TSX Venture Exchange focused on mineral exploration and development.
For further information, contact:
On behalf of the Board,
Chief Executive Officer and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including, but not limited to, the timing of future exploration work or drilling, and the expansion of the mineralization. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Gold Rush Cariboo Inc.., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependency upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
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