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VANCOUVER, June 27, 2019 /CNW/ - PRIZE MINING
CORPORATION ("Prize" or the "Company") (TSXV:PRZ)
(OTCQB:PRZFF) (MQSP:GR:FRANKFURT) is pleased to announce that it
has reached an agreement with Apex Resources Inc. ("Apex") to amend
the terms of the Kena Option Agreement (the "Option Agreement"),
that was entered into between the Company's now wholly-owned
subsidiary, 1994854 Alberta Ltd. ("1994854"), and Apex on
September 23, 2016, subject to TSX-V
approval. The amending agreement to the Option Agreement (the
"Amending Agreement") between 1994854 and Apex, dated June 26, 2019, extends future expenditure
requirements on the Kena property and advances certain payment of
monetary and share considerations in order for the Company, through
1994854, to earn an 80 percent interest in the Kena gold property
located in the Kootenay Boundary region of southeastern
British Columbia.
"We are appreciative of the support of Apex Resources in
working with us to amend the terms of the Kena gold property option
agreement" said Michael McPhie,
President and CEO of Prize. "These amendments give us some
additional flexibility in allocating our resources in the future
and allow us to focus on activities that will give us the greatest
opportunity for creating shareholder value. With a NI 43-101
bulk tonnage gold resource of 481,000 ounces indicated and
1,318,000 ounces inferred we believe in the potential of the Kena
Gold Project and are looking forward to advancing it to the next
phase of exploration and development in the near term".
As of May 31, 2019, Prize has
incurred expenditures totaling approximately $2.35 million on the Kena gold property and has
made cash payments of $1,000,000 and
issued 1,125,000 million shares since the Option Agreement was
signed between the parties.
The Amending Agreement amends the terms of the Option Agreement
as follows:
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1
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Exploration
Expenditures – Exploration expenditure obligations
under the Option Agreement were as follows with the "Effective
Date" being October 3, 2016:
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(a) $100,000,
within twelve months from the Effective Date;
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(b) an
additional $400,000 within twenty-four months from the Effective
Date;
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(c) an
additional $1,000,000 within thirty-six months from the Effective
Date; and
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(d) an
additional $1,500,000 within forty-eight months from the Effective
Date
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For total exploration
expenditures of $3,000,000
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Pursuant to the
Amending Agreement item 1(c) above has been extended by two
years to sixty months
from the Effective Date and item 1(d) above has been extended by
two years to seventy-two months
from the Effective Date
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2.
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Shares –
under the Option Agreement, Prize had an obligation to issue a
final allocation of 375,000 shares to Apex within thirty-six months
from the Effective Date. Pursuant to the Amending Agreement,
Prize is required to issue the 375,000 shares anytime before July
31, 2019.
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3.
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Cash Payments
– under the Option Agreement a final cash payment of $250,000 was
to be made within thirty-six months from the Effective Date.
Pursuant to the Amending Agreement, the final cash payment of
$250,000 is to be paid one month earlier, within thirty-five months
from the Effective Date.
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All other provisions of the Option Agreement remain
unamended.
The Amending Agreement is subject to TSX-V approval.
About Prize Mining Corporation
Prize is a junior mining issuer listed on the TSX Venture
Exchange. Prize is focused on the exploration and development
of the Manto Negro Copper Property in Mexico and the Kena Gold Property in BC.
Find out more at: www.prizemining.com
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Reader Advisory
Forward-Looking Statements. This news release contains
forward-looking statements. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate",
"scheduled", "potential", or other similar words, or statements
that certain events or conditions "may", "should" or "could"
occur.
The forward-looking statements are based on certain key
expectations and assumptions made by Prize, including the 2017 and
2018 diamond drilling program on Prize's Kena Project.
Although Prize believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Prize can give no assurance that they will prove
to be correct. There is no assurance that the result of these
exploration programs will be successful. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These
include, but are not limited to, exploration risks and that
required regulatory and third-party approvals and consents are not
obtained on terms satisfactory to the parties within the timelines
provided.
The reader is cautioned that assumptions used in the preparation
of such information, although considered reasonable by the Company
at the time of preparation, may prove to be incorrect and readers
are cautioned not to place undue reliance on forward-looking
information, which speaks only as of the date hereof. The
Company does not undertake any obligation to release publicly any
revisions to forward-looking information contained herein to
reflect events or circumstances that occur after the date hereof or
to reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
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 Prize Mining Corporation