Toronto, Ontario – March 1, 2021 – PJX Resources Inc. (“PJX” or “the Company”) is pleased to announce it has completed the previously announced (see February 9, 2021 press release) 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.
All securities issued to Osisko pursuant to the Investment Agreement are subject to a statutory four month hold period ending on June 27, 2021.
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.
John Keating, President and CEO of PJX commented, “Osisko’s recognition and early adoption of the Vulcan Gold Belt potential with an investment in PJX is just the beginning. PJX’s strategy is to discover new deposits in existing mining camps where there is infrastructure to bring new mines into production, and new technologies can help identify undiscovered deposits. What few people know is that hidden within the Sullivan base metal mining camp is the Vulcan Gold Belt. It is an area 60 km long by 30km wide with gold in the creeks that has been mined as placer gold since the 1800’s. PJX has already identified 16 large priority target areas with potential to discover new gold deposits. Osisko is the first gold development company to recognize this potential and is an early adopter with this initial investment in PJX. More information about the Vulcan Gold Belt will be announced over the coming months including drill results from the David Gold Zone on PJX’s Gold Shear Property.”
Vulcan Gold Belt Highlights
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 (see map below).
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, base metals, and other metals needed for our electric and technology driven societies. PJX’s primary properties are located in the historical mining area of Cranbrook and Kimberley, British Columbia. Please refer to our web site http://www.pjxresources.com 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.