Prime Mining Corp. ("
Prime" or
“
PRYM” or the "
Company")
(
TSX.V: PRYM)
(OTCQB: PRMNF)
(
Frankfurt:A2PRDW) is pleased to announce that Mr.
Daniel Kunz has been appointed Chief Executive Officer, replacing
Mr. Andrew Bowering who has been appointed Executive
Vice-President. Both Mr. Kunz and Mr. Bowering remain members of
the Company’s board of directors (the “
Board”). In
making this transition, Mr. Kunz is relinquishing his role as
Executive Chairman.
Mr. Murray John has been appointed Chairman of
the Board and two new Board members have been appointed, with Mr.
Paul Sweeney and Mr. Marc Prefontaine replacing Mr. Gregory Liller
and Mr. Jorge Ramiro Monroy. Mr. Liller will continue in his
current role as Prime’s Vice-President and Chief Operating
Officer.
Mr. Sweeney is an experienced finance and mining
executive and company director with international experience in
both the mining and renewable energy sectors. An independent
business consultant since May 2011, Mr. Sweeney is a non-executive
director of OceanaGold Corporation, a TSX-listed international gold
producer and Adventus Mining Corporation, a TSX.V-listed
development and exploration company, where he chairs the audit
committee for both companies. Previously he has served on the board
of directors of Tahoe Resources Inc. before its sale to Pan
American Silver Corp. and as Chief Financial Officer for both
Canico Resource Corp. (acquired by Vale S.A.) and Sutton Resources
Ltd (acquired by Barrick Gold Corporation) and a senior executive
for Plutonic Power Corporation. Mr. Sweeney will act as Chairman of
the Company’s Audit Committee.
Mr. Prefontaine is a professional geologist with
over 30 years of experience, having worked for companies such as
Teck Resources Limited and Hunter Dickinson Inc. As Chief Executive
Officer of Grayd Resources Corporation from 2003 to 2012, he led
the company through the discovery and initial evaluation of the La
India gold deposit in Sonora, Mexico. Grayd was acquired by Agnico
Eagle Mines Limited for $275 million. La India has been in
commercial production since 2013. More recently, Mr. Prefontaine
co-founded Orla Mining Ltd. (“Orla”) and served as Orla’s Chief
Executive Officer from 2015 until 2019, acquiring core gold
development projects in Panama and Mexico. During his tenure as
Chief Executive Officer, Orla’s market capitalization increased
from $5 million to $280 million. He is currently a principal of the
Marshall Precious Metal Fund, a recently formed resource investment
fund that focuses on investing in exploration–stage junior mining
companies.
Additionally, the Company announces the
engagement of Mr. Kerry Sparkes, President of Sparrowhawk
Consulting Ltd., as a technical advisor. Mr. Sparkes is a
registered professional geologist and has over 30 years of
experience in the mineral exploration business as both an
exploration geologist and a mining executive. Mr. Sparkes recently
retired after 7 years as Vice President Geology for Franco-Nevada
Corporation and was responsible for evaluating the geological and
resource potential of numerous mineral deposits worldwide. Mr.
Sparkes was a founder and director of Orla. Previous positions
include Vice President Exploration with Rainy River Resources Ltd.,
Vice President Exploration with Messina Minerals Inc., and Senior
Geologist with Voisey's Bay Nickel Co. Ltd. Mr. Sparkes
currently serves as a director of Aurion Resources Ltd. and an
advisor to Canstar Resources Inc. Mr. Sparkes holds both
undergraduate and graduate degrees from Memorial University of
Newfoundland.
Daniel Kunz, Chief Executive Officer of Prime
commented: “We are delighted to welcome Paul Sweeney and Marc
Prefontaine to our Board. Paul is an immensely experienced finance
and mining executive and company director and Marc brings extensive
experience in building shareholder value specifically from projects
in Mexico. We also are pleased that Murray has agreed to serve as
Chairman of the Board and look forward to his leadership and
advice. Also, we are fortunate to have Kerry Sparkes join our
technical team to help with the exploration at Los Reyes. We extend
our thanks to Mr. Jorge Ramiro Monroy for his time and
contributions to the Company.”
The Prime Board now comprises Murray John,
Daniel Kunz, Andrew Bowering, Paul Larkin, Marc Prefontaine and
Paul Sweeney.
Prime also announces that, pursuant to its Stock
Option Plan, it has granted stock options to certain directors,
management and consultants to purchase an aggregate of 3,100,000
common shares of the Company at the price of $0.95 per share for a
period of 5 years from the grant date. The options will vest 1/3
immediately as of the date of grant; 1/3 six months after the date
of the grant; and 1/3 twelve months after the date of the grant.
This stock option grant is subject to acceptance by the TSX Venture
Exchange.
Amended Los Reyes Option
Agreement
The Company also announces that it has entered
into an amendment (the “Amendment”) to the option
agreement for the Loy Reyes gold and silver project (the
“Property”) with Vista Gold Inc. (“Vista”). The
Amendment provides for the cancellation of all ongoing net smelter
royalties (the “NSR”) and back-in rights (the
“Back-in Right”) held by Vista, in consideration
for accelerating the final US$1,500,000 option payment owing to
Vista and completing a series of additional cash payments totalling
US$2,100,000.
Under the terms of the Amendment, the Company
has agreed to accelerate the due date for the final US$1,500,000
option payment (the “Option Payment”) to Vista
from October 23, 2021 to no later than September 30, 2020 (the
“Purchase Price Payment Date”). Upon the Company
making the Option Payment, Vista will no longer retain a capped NSR
on production from open-pit mining and a perpetual NSR on
production from underground mining. In addition, Vista will no
longer have the Back-in Right to assume a 49% non-carried interest
in any underground mining project developed at the Property.
If the option is exercised, the Amendment
requires the Company to pay Vista an additional US$2,100,000
through two payments of: (i) US$1,100,000 no later than six months
from the Purchase Price Payment Date; and (ii) US$1,000,000 no
later than twelve months from the Purchase Price Payment Date. If
the Company fails to make the final two payments, Vista will have
the right to reinstate its NSRs and Back-in Right.
About Prime Mining Corp.Prime
is an ideal mix of successful capital markets and mining executives
and experienced local exploration personnel who are expanding the
exploration initiative at the historically productive Los Reyes
gold and silver project in Sinaloa, Mexico with a current measured
and indicated in-pit oxide mineral resource for the Property of
19.8 million tonnes containing 633,000 gold ounces at 1.0 gram per
tonne and 16,604,000 silver ounces at 26.2 grams per tonne. Los
Reyes holds substantial resource upside based on open extensions of
known resources, ten kilometres of undrilled strike length and at
least eight additional exploration targets. Prime Mining has a
well-planned capital structure with significant management and
insider ownership.
For more information please visit www.primeminingcorp.ca and
follow us on Twitter, Facebook or LinkedIn.
ON BEHALF OF THE BOARD OF DIRECTORS
Daniel KunzChief Executive Officer
For further information, please
contact:
Daniel KunzChief Executive
Officer and DirectorPrime Mining Corp.1307 S. Colorado Ave.Boise,
Idaho 83706Telephone: 1-208-926-6379 officeemail:
dan@dkunzassoc.com
Andrew Bowering Executive Vice
President and DirectorPrime Mining Corp.1507 – 1030 West Georgia
StreetVancouver, BC, V6E 2Y3Telephone: (604) 428-6128Facsimile:
(604) 428-6430E: andy@primeminingcorp.ca
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.
Forward Looking
InformationInformation set forth in this document may
include forward-looking statements. While these statements reflect
management's current plans, projections and intents, by their
nature, forward-looking statements are subject to numerous risks
and uncertainties, some of which are beyond the control of the
Company. 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 these forward-looking
statements. There is no assurance the transactions noted above will
be completed on the terms as contemplated, or at all. The Company’s
actual results, programs, activities and financial position could
differ materially from those expressed in or implied by these
forward-looking statements.
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