TORONTO, February 9, 2021 - PJX Resources Inc. ("PJX" or "the Company") (TSXV:PJX)(OTC PINK:PJXRF) is pleased to announce that it has entered into an investment agreement ("Investment Agreement") with Osisko Gold Royalties Ltd. ("Osisko") pursuant to which Osisko has agreed to (i) purchase 6,250,000 common shares of PJX at a subscription price equal to C$0.16 per share, for an aggregate purchase price of C$1,000,000, and (ii) acquire a 0.5% net smelter return royalty ("NSR") on the Company's Gold Shear, Eddy, Zinger and Dewdney Trail properties for aggregate cash consideration of C$1,000,000.
John Keating, President and CEO of PJX commented, "Osisko has an exceptional track record in making early-stage investments in gold deposit discovery and development. Their investment in the Vulcan Gold Belt is validation of the work PJX has done to date. PJX has consolidated 100% of the mineral rights to the largest land holdings in the Vulcan Gold Belt in southeastern, BC, Canada. Over 15 gold target areas have been identified to date with potential for more. We look forward to Osisko's support and the opportunity to consult with their team to explore and develop the gold potential."
The Company intends to use the net proceeds from the sale of the common shares and the NSR for expenditures on the Gold Shear, Eddy, Zinger and Dewdney Trail properties located in the Vulcan Gold Belt and for general working capital.
All securities issued to Osisko pursuant to the Investment Agreement are subject to a statutory four month hold period. The issuance of the securities is subject to the final approval of the TSX Venture Exchange. The transaction is expected to close by the end of February, 2021.
Vulcan Gold Belt Highlights
- Target type: Orogenic and Magmatic Gold Trend with Fort Knox, Telfer, Sukhoi Log and other deposit type potential.
- Only place in North America where two regional crustal penetrating structures associated with gold deposits and gold mining camps in Canada and the United States intersect.
- Estimated 1.5 million ounces of placer gold produced since 1864 gold rush.
- Significantly underexplored - no bedrock source of placer gold identified to date - fewer than 150 holes drilled for gold exploration on entire 60 km trend.
- First time that 100% owned mineral rights have been consolidated, covering 380 km² with gold potential.
- PJX has a pipeline of gold, silver and base metal (copper, lead, zinc) targets - 16 large gold target areas identified to date on PJX's 4 gold properties called the Gold Shear, Eddy, Zinger, and Dewdney Trail Properties.
The Gold Shear, Eddy, Zinger, and Dewdney Trail Properties represent the largest consolidated land package in the Vulcan Gold Belt, a potential new gold camp located near Cranbrook, southeastern British Columbia, Canada. The Vulcan Gold Belt occurs within the Sullivan base metal mining district. Historical focus on Sullivan type zinc, lead and silver mining is part of the reason the district's gold potential has been overlooked and underexplored. The Vulcan Gold Belt fits modern geological models and criteria for the formation of a world class gold camp. PJX has already identified a pipeline of priority target areas to explore and drill with potential to make multiple gold discoveries.
The foregoing geological disclosure and content of this news release has been reviewed and approved by John Keating P.Geo. (qualified person for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects.) Mr. Keating is the President, Chief Executive Officer and a Director of PJX.
About PJX Resources Inc.
PJX is a mineral exploration company focused on building shareholder value and community opportunity through the exploration and development of mineral resources with a focus on gold and base metals. PJX's primary gold and base metal properties are located in the historical mining area of Cranbrook and Kimberley, British Columbia. Please refer to our website for additional information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Linda Brennan, Chief Financial Officer
This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. Forward-looking statements include, but are not limited to, statements with respect to the closing of the transactions contemplated by the Investment Agreement, exploration results, the success of exploration activities, mine development prospects, completion of economic assessments, and future gold production. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements.
Although PJX has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: PJX Resources Inc.
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