Pedro Resources Announces Acquisition of Voisey's Bay

July 14, 2021 5:30 PM EDT | Source: Pedro Resources Ltd.

Toronto, Ontario--(Newsfile Corp. - July 14, 2021) - Pedro Resources Ltd. ("Pedro" or the "Company") is pleased to announce that, further to its press release of November 27, 2020, it has acquired (the "Transaction") all of the issued and outstanding common shares in the capital of Voisey's Bay West Nickel & Cobalt Corp. ("Voisey's Bay"). The Transaction was carried out by way of a share purchase agreement dated November 27, 2020 between the Company, Voisey's Bay and the shareholders of Voisey's Bay (collectively, the "Vendors"). 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 issued 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 are subject to a statutory hold period of four months and one day from the issuance thereof, as applicable, in accordance with applicable securities laws.

In connection with the Transaction, the Company has granted a 2.5% net smelter returns royalty ("NSR") in favour of a syndicate, subject to the ability of the Company to purchase 1% of the NSR (resulting in the remaining NSR being 1%) for a purchase price of $1,500,000 at any time before fifth anniversary of the date hereof.

About Pedro Resources Ltd.

Pedro Resources Ltd. is a Canadian exploration company focused on mineral exploration and development.

For further information, contact:

On behalf of the Board,
Brian Stecyk
Chief Executive Officer and Director
Tel: 780-953-0111

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.

Forward-Looking Statements

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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