VANCOUVER, April 2, 2019 /CNW/ - PRIZE MINING
CORPORATION ("Prize" or the "Company") (TSXV:PRZ)
(OTCQB:PRZFF) (MQSP:GR:FRANKFURT) wishes to announce that the
Company has entered into a performance based option agreement with
Denton Resources Inc. ("Denton"), a private corporation, to acquire
a 100% interest in the 62 mineral claims comprising the Carscallan
property in the district of Cochrane, near Timmins, Ontario.
"The Timmins Gold Camp has proven time and time again to be
one of the most prolific gold producing regions in the world
hosting a number of significant mineral deposits and mines"
said Michael McPhie, President and
CEO of Prize. "I began my career in this area and am
excited to return and explore the potential of the Carscallan
property. This is a success based option agreement that allows us
to test the potential of this historic property and try and build
on the success of other meaningful discoveries in the area that
have generated significant value for other companies and their
shareholders."
The option agreement is subject to TSX Venture Exchange
("TSX-V") approval.
Carscallan Property, West Timmins,
Ontario
The claims of the Carscallan Property are located in Carscallen
Township approximately 6 kilometers west along highway 101 from the
Pan American Silver "Timmins West Mine". The property has
excellent access and development infrastructure nearby and the town
of Timmins is located 25
kilometres to the east.
Since 1907, this area of North-eastern Ontario has produced in excess of 70 million
ounces of gold from world class deposits such as the Hollinger and
McIntyre Mines as well as massive quantities of base metals via the
Kidd Creek Mine, one of the largest VMS deposit types of its kind
in the world. Gold mineralization is directly associated with
major splay faults emanating north which bisect the
Porcupine-Destor Fault Zone (PDFZ), a major geological marker
horizon which extends from Timmins
for a distance of over 200 kilometres' and eastward through
Ontario and into Quebec.
The Timmins West Mine, a significant producing gold mine now
owned by Pan American Silver and formerly owned by Lakeshore Gold
and Tahoe Resources, has been in commercial production since 2011,
and represents an example of the discovery and production
potentials which exist within the Timmins West Camp.
Terms of the Option Agreement
In consideration of Prize having the option to acquire 100%
interest in the Carscallan Property, subject to TSX-V approval, the
following terms apply:
- Prize commits to the drilling of at least four holes in areas
defined as geophysical anomalies by Denton in a Phase 1, two drill
holes, and Phase 2, two drill holes, program for a total commitment
of 3,200 meters and pay Denton $15,000 per anomaly for a total of $30,000 within 5 days after TSX-V approval.
- If either of these anomalies has successfully met the test
criteria for success which means "the discovery
intersecting meaningful mineralization of targeted metals of a
grade and thickness that would be worthy of follow-up drilling,
having the potential to be economic to mine and seen by the public
market as high grade", then in order for the Company to
exercise the option under the option agreement, the Company will be
obligated to issue 1,000,000 common shares and 1,000,000 warrants
in the Company per successful anomaly. The warrants will have a
term of 24 months and have an exercise price of $0.05 per share. Any shares and warrants issued
pursuant to the exercise of the option will have a restrictive
legend for four months and one day from the date of issuance.
- In addition to the option exercise consideration, should the
Company decide to exercise the option and acquire 100% percent
interest in the Carscallan Property, the Company grants to Denton,
or its nominee, a 3% royalty on net smelter returns on production
from the Carscallan Property. 2.5% of the royalty will be
registered to Denton and 0.5% will be assigned to Generation
Portfolio Management Corp.
- Furthermore, upon the Company exercising the option and
completing a technical report compliant which the requirements of
National Instrument 43-101 - Standard of Disclosure for Mineral
Projects (a "Technical Report"), which indicates a minimum of
2,000,000 ounces of an inferred resource, as defined in accordance
with the CIM Definition Standards on Mineral Resources and
Reserves, advance royalty payments in the amount of $50,000 per anomaly that meets the test criteria
(as defined above) (the "Advance Payments") shall begin to accrue
to the benefit of the grantee, with the first such Advance Payment
being due three (3) months after the date upon which such Technical
Report is completed.
Current Status
Due diligence work on the Carscallan property by Prize began
earlier in 2019. This work is ongoing and assay results from
the initial drilling of the identified anomalies are
pending.
ABOUT PRIZE MINING CORPORATION
Prize is a junior mining issuer listed on the TSX Venture
Exchange. Prize is focused on the exploration and development
of the Manto Negro Copper Property in Mexico and the Kena Gold Property in BC.
Find out more at: www.prizemining.com
Follow Prize Mining on Social Media:
Twitter
Facebook
LinkedIn
Reader Advisory
Forward-Looking Statements. This news release contains
forward-looking statements. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate",
"scheduled", "potential", or other similar words, or statements
that certain events or conditions "may", "should" or "could"
occur.
The forward-looking statements are based on certain key
expectations and assumptions made by Prize. Although Prize
believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because
Prize can give no assurance that they will prove to be
correct. There is no assurance that the result of these
exploration programs will be successful. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These
include, but are not limited to, exploration risks and that
required regulatory and third-party approvals and consents are not
obtained on terms satisfactory to the parties within the timelines
provided.
The reader is cautioned that assumptions used in the preparation
of such information, although considered reasonable by the Company
at the time of preparation, may prove to be incorrect and readers
are cautioned not to place undue reliance on forward-looking
information, which speaks only as of the date hereof. The
Company does not undertake any obligation to release publicly any
revisions to forward-looking information contained herein to
reflect events or circumstances that occur after the date hereof or
to reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
Neither the 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.
SOURCE Prize Mining Corporation
