Business
First Mining Gold Corp. To Option Pelangio Exploration's Birch Lake Project
TORONTO, ON / ACCESSWIRE / October 4, 2021 / Pelangio Exploration Inc. (TSXV:PX)(OTC PINK:PGX...
About this update from Pelangio Exploration Inc.
[{"type":"text","content":"First Mining Gold Corp. To Option Pelangio Exploration's Birch Lake ProjectTORONTO, ON / ACCESSWIRE / October 4, 2021 / Pelangio Exploration Inc. (TSXV:PX)(OTC PINK:PGXPF) (\"Pelangio\" or the \"Company\") is pleased to announce that it has entered into an earn-in agreement with First Mining Gold Corp. (\"First Mining\") and Gold Canyon Resources Inc. (\"Gold Canyon\"), a wholly-owned subsidiary of First Mining, on Pelangio's Birch Lake and Birch Lake West properties (together, the \"Birch Lake Project\") which is adjacent to First Mining's Springpole Gold Project (see Figure 1), located approximately 120 km northeast of Red Lake, Ontario.Highlights:Collaboration with First Mining, a well-financed strategic partner in a potential new mining camp.First Mining, through Gold Canyon, may acquire up to an 80% interest in the Birch Lake Project by incurring $3,500,000 in exploration expenditures, making $750,000 in cash option payments to Pelangio ($400,000 of which may, at First Mining's election, be made in shares of First Mining) and issuing 1,300,000 shares of First Mining to Pelangio.\"We are delighted to have entered into the earn-in agreement with First Mining in this new and evolving gold camp. We believe that Pelangio's Birch Lake Project represents a high-grade gold exploration opportunity with significant potential to complement ongoing mine development at First Mining's Springpole Gold Project. We are looking forward to working with First Mining,\" commented Ingrid Hibbard, President and CEO. \"This agreement unlocks the inherent value of this project for our shareholders while we concurrently explore and evaluate the discovery potential at Dome West and Gowan in Ontario, and at our Manfo and Obuasi projects in Ghana,\" she added.Agreement Terms:Pursuant to the earn-in agreement among Pelangio, First Mining and Gold Canyon, Gold Canyon may earn an initial 51% interest in the Birch Lake Project by paying Pelangio a total of $350,000 in cash, issuing to Pelangio 1,300,000 First Mining shares and completing $1,750,000 in exploration expenditures, in accordance with the following schedule:Upon completion of the 51% earn-in, Gold Canyon has the right to earn a further 29% interest (for a total interest of 80%) in the Birch Lake Project for a period of up to two years from the date of the exercise of the 51% earn-in right (the \...