Business
Power Group Projects Corp Announces Agreement With RJK Explorations Ltd.
TORONTO, Feb. 10, 2020 (GLOBE NEWSWIRE) -- Power Group Projects Corp. (the “Company” or “Power Group”) (TSX V: PGP, OTC Pink Sheets: CBBWF), is pleased to annou
About this update from Power Group Projects Corp.
[{"type":"text","content":" TORONTO, Feb. 10, 2020 (GLOBE NEWSWIRE) -- Power Group Projects Corp. (the “Company” or “Power Group”) (TSX V: PGP, OTC Pink Sheets: CBBWF), is pleased to announce that they have entered into an agreement with RJK Explorations Ltd to pursue kimberlite targets that RJK may identify on Power Groups Project Corp. (PGPC) claims in the Cobalt, Ontario area. The Exploration Agreement with RJK Explorations (“RJK”): The term of the agreement will be for a period of three years from the date of acceptance. RJK will pay a fee of $12,000 cash per year for three years for a total of $36,000 to PGPC to enter into an agreement whereby RJK will have the right to identify, sample and drill test with one diamond drill hole any identified potential kimberlite targets (Phase One). Should RJK determine that following it’s initial Phase One exploration to continue exploration to each and any identified target, then RJK and PGPC will enter into a Participating Joint-Operating Agreement whereby RJK would have 60% interest and PGPC would have a 40% interest. RJK would then provide PGPC with a Phase two exploration budget, at which time, PGPC will have 60 days to agree to participate. RJK will place their 60% of the proposed budget into a lawyer’s trust account for the 60 days until the joint-venture is triggered. RJK will create a Mining Management Committee for the purposes of allowing all parties to better understand the exploration plans. This includes, review of budgets, proposed work and the hiring of consultants. Should PGPC decide not to participate then it will be reduced to a carried 1.5% GORR of which fifty percent (0.75%) can be purchased for a cash payment of $1,000,000. Should RJK find mineralized zones other than kimberlites, the structure of the agreement would revert to 50% for RJK and 50% for PGPC with RJK being the operator. RJK would then provide PGPC with a Phase two exploration budget, at which time, PGPC would have 60 days to agree to participate. RJK will place their 50% of the proposed budget into a lawyer’s trust account for the 60 days until such time the joint venture is triggered. Should PGPC agree to participate, a Management Mining Committee would be established. If PGPC decides not to participate, then it will be reduced to a 1.5% NSR of which 50% (0.75%) may be purchased for $1,000,000 Subject to Phase two and expl...