VANCOUVER, British Columbia, Sept. 10, 2020 (GLOBE NEWSWIRE) -- P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD) reports that, subject to regulatory approval, it has signed a mineral lease and option agreement with La Cuesta International, Inc. (“La Cuesta”), an arm’s length private company, to lease a 100% interest in the Lost Cabin Property located in south central Oregon.
Lost Cabin
The Lost Cabin Property consists of 106 unpatented lode mining claims that cover an area of over 2,190 acres, located in Lake County, Oregon. The property is located along a major-northwest-trending structural lineament and hydrothermal alteration associated with silicic volcanism.
The principals of La Cuesta are Perry Durning and Frank (Bud) Hillemeyer, who received the PDAC Thayer Lindsley International Mineral Discoveries Award in 2010.
La Cuesta has permitted 18 well-located drill sites at Lost Cabin with the U.S. Bureau of Land Management. The Company plans to further refine the drill targets by initiating a systematic exploration program consisting of airborne and ground geophysical studies, further prospecting as well as additional geochemical sampling and geologic mapping.
Mineral Lease and Option Agreement Terms
Under the terms of the mineral lease and option agreement, the Company has the right to use the property for exploration and mining for a minimum of 50 years provided it continues to make the following preproduction payments: US$5,000 and 100,000 common shares in the capital of the Company on signing the agreement (the “Effective Date”); US$5,000 six-months after the Effective Date; US$10,000 12-months after the Effective Date; US$10,000 18-months after the Effective Date; US$15,000 24-months after the Effective Date; US$20,000 30-months after the Effective Date and every six months thereafter. The term of the agreement may continue after 50 years provided active mining operations are being conducted on the property. The Company is also required to incur minimum work expenditures on the property of US$30,000 in the first year and a minimum of 2,000 meters of drilling in the second year.
On achievement of production on the property, a production royalty of 2% of net smelter returns is payable on claims owned by La Cuesta and 0.5% of net smelter returns is payable on third party claims and claims acquired within an area of influence, provided that a minimum production royalty of US$25,000 is payable quarterly. On payment to La Cuesta of US$10,000,000 in any combination of pre-production payments, production royalties and minimum royalties, the production royalty on claims owned by La Cuesta reduces to 1% and on third-party claims and claims acquired within the area of influence to 0.25%.
About P2 Gold Inc.
P2 is a mineral exploration and development company focused on advancing precious metals discoveries and acquisitions in the Pacific Northwest.
For further information, please contact:
| P2 Gold Inc. www.p2gold.com Joseph Ovsenek President, CEO and Chairman jovsenek@p2gold.com Tel: +1 (604) 558-5167 | Chris Hopkins, CFO chopkins@p2gold.com Tel: +1 (416) 786-9793 |
Forward Looking Information
This press release contains "forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. “Forward-looking information” includes statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, the Company’s expectations, strategies and plans for the Lost Cabin Property, including the Company’s planned expenditures and exploration activities.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See “Risk Factors” in the Company’s final prospectus dated October 4, 2018 filed on SEDAR at www.sedar.com for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.