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Pelangio Exploration Options Birch Lake Property to Jubilee Minerals Inc. - $2,000,000 In Exploration Expenditures and 15% Equity Interest
TORONTO, ON / ACCESSWIRE / September 2, 2020 / Pelangio Exploration Inc. (TSX-V:PX)(OTC PINK:...
About this update from Pelangio Exploration Inc.
[{"type":"text","content":"Pelangio Exploration Options Birch Lake Property to Jubilee Minerals Inc. - $2,000,000 In Exploration Expenditures and 15% Equity InterestTORONTO, ON / ACCESSWIRE / September 2, 2020 / Pelangio Exploration Inc. (TSX-V:PX)(OTC PINK:PGXPF) (\"Pelangio\" or the \"Company\") is pleased to announce that is has entered into an Option Agreement (the \"Agreement\") with Jubilee Minerals Inc. (\"Jubiliee\") on its Birch Lake Property (\"BLP\") located approximately 110 km northeast of the town of Red Lake, Ontario, in the Red Lake Mining Division (see Map 1).Ingrid Hibbard, President and CEO of Pelangio commented, \"We are excited to have Jubilee Minerals Inc. agree to spend $2,000,000 in exploration expenditures as part of the earn-in requirements on our Birch Lake Property while we retain a 100% interest on our adjoining Birch Lake West Property. The Birch Lake Property is an extremely prospective and under-explored gold property within the Red Lake Mining District which hosts multiple historical high-grade drill intercepts and numerous surface gold occurrences in both shear zones and banded iron formation. Drilling results from Hole TWD-096, the best hole to date on the property, returned 34.54 g/t gold over 9.85 meters from work completed by previous operators at High Grade Island. This exceptional hole demonstrates the high-grade potential of this project.\"Map 1: Birch Lake and Birch Lake West Properties Regional GeologyTerms of the Option Agreement and Work CommitmentThe Option Agreement provides Jubilee Minerals Inc., a private Quebec corporation, with the option to earn a 70% interest in the BLP. As part of the earn-in requirements, Jubilee must make the following cash payment and complete a total of $2,000,000 in exploration expenditures in accordance with the following schedule:Cash PaymentsWork CommitmentYear$5,000-On the date the agreement is accepted by the TSXV-$500,000On or before August 31, 2021-$500,000On or before August 31, 2022-$500,000On or before August 31, 2023 $500,000On or before August 31, 2024$5,000$2,000,000 In addition, in order to earn its 70% interest, on or before August 31, 2024, Jubilee must issue to Pelangio common shares of Jubilee in the amount equal to 15% of Jubilee's issued and outstanding capital, after giving effect to the issuance of such shares to Pelangio and calculated immediately prior to a...