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MG Capital and DLP Resources Sign Definitive Option Agreement to Earn up to 75% of PJX Resources' DD Property
Cranbrook, British Columbia--(Newsfile Corp. - July 20, 2020) - MG Capital Corporation (TSXV:...
About this update from Dlp Resources, Inc.
[{"type":"text","content":"MG Capital and DLP Resources Sign Definitive Option Agreement to Earn up to 75% of PJX Resources' DD PropertyCranbrook, British Columbia--(Newsfile Corp. - July 20, 2020) - MG Capital Corporation (TSXV: DLP) is pleased to announce that its wholly-owned subsidiary, DLP Resources Inc. (\"DLP\"), and PJX Resources Inc. (\"PJX\") have signed a definitive option agreement in respect of DLP's option to acquire an interest in PJX's Sullivan-type Lead Zinc Silver DD Property (the \"DD Property\").The DD Property has potential to host a high-grade Sullivan style deposit that is located near Cranbrook, British Columbia, Canada. The Sullivan Deposit occurs at a geological horizon called the Lower-Middle Aldridge Contact or \"LMC\" horizon. A 1425 metre sub-vertical hole (PAN-18-01) to test a Magnetotelluric (MT) geophysical anomaly stopped short of the LMC horizon (see Figure below).Figure 1To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/6456/60001_fba1b6a68487480a_001full.jpgPJX and DLP believe there is an opportunity to drill the Pan-18-01 hole to a greater depth and locate the LMC zone and potential Sullivan style mineralization. The key terms of the definitive option agreement are consistent with the terms of the letter of intent announced on June 22, 2020, being as follows:DLP to earn a 50% undivided interest in the DD Property by spending $4 million in exploration expenditures and making a total of $250,000 cash payments to PJX over 48 months of the effective date of the agreement.DLP will have the right to earn an additional undivided 25% interest (75% total interest) by delivering a bankable commercial feasibility study on the DD Property within 96 months of the effective date of the agreement.Upon DLP's exercise of the Option and acquisition of a 50% or 75% interest in the DD Property, as applicable, the parties will enter into a joint venture agreement for the further development of the Property.Ian Gendall, President of DLP commented, \"Now that we have the Definitive Option signed and the work permit in place, we can commence drilling to extend PAN-18-01 to the LMC horizon by late July-early August. The geology and Sullivan type deposit potential makes the DD Property very attractive. No holes have tested the LMC horizon on the property and the historical holes drilled to test the...