Hi steez; First Mining Gold Corp. to Option Pelangio Exploration's Birch Lake Project
TORONTO, Ontario (October 4, 2021) –


https://www.pelangio.com/news-releases/2021/pelangio-exploration-options-birch-lake-project/


Pelangio Exploration Inc. (TSXV:PX; OTC PINK:PGXPF) (“Pelangio” or the
“Company”) is pleased to announce that it has entered into an earn-in
agreement with First Mining Gold Corp.
(“First Mining”) and Gold Canyon Resources Inc. (“Gold Canyon”), a
wholly-owned subsidiary of First Mining, on Pelangio’s Birch Lake and
Birch Lake West properties (together, the “Birch Lake Project”) which
is adjacent to First Mining’s Springpole Gold Project (see Figure 1),
located approximately 120 km northeast of Red Lake, Ontario.



Highlights:

Collaboration with First Mining, a well-financed strategic partner in a potential new mining camp.
First Mining, through Gold Canyon, may acquire up to an 80% interest in the Birch Lake Project by incurring $3,500,000 in exploration expenditures, making $750,000 in cash option payments to Pelangio ($400,000 of which may, at First Mining’s election, be made in shares of First Mining) and issuing 1,300,000 shares of First Mining to Pelangio.
“We are delighted to have entered into the earn-in agreement with First Mining in this new and evolving gold camp. We believe that Pelangio’s Birch Lake Project represents a high-grade gold exploration opportunity with significant potential to complement ongoing mine development at First Mining’s Springpole Gold Project. We are looking forward to working with First Mining,” commented Ingrid Hibbard, President and CEO. “This agreement unlocks the inherent value of this project for our shareholders while we concurrently explore and evaluate the discovery potential at Dome West and Gowan in Ontario, and at our Manfo and Obuasi projects in Ghana,” she added.



Agreement Terms:

Pursuant to the earn-in agreement among Pelangio, First Mining and Gold Canyon, Gold Canyon may earn an initial 51% interest in the Birch Lake Project by paying Pelangio a total of $350,000 in cash, issuing to Pelangio 1,300,000 First Mining shares and completing $1,750,000 in exploration expenditures, in accordance with the following schedule:



Cash Payments

Share Issuances

Exploration

Expenditures

Year

$50,000

250,000



On the Closing Date

$50,000

250,000

Minimum $250,000

On or before the First Anniversary of the Closing Date

$50,000

250,000



On or before the Second Anniversary of the Closing Date

$50,000

250,000



On or before the Third Anniversary of the Closing Date

$150,000

300,000

Additional $1,500,000

On or before the Fourth Anniversary of the Closing Date



Upon completion of the 51% earn-in, Gold Canyon has the right to earn a further 29% interest (for a total interest of 80%) in the Birch Lake Project for a period of up to two years from the date of the exercise of the 51% earn-in right (the “Second Earn-In Period”). In order to earn the additional 29%, Gold Canyon or First Mining shall complete, within the Second Earn-In Period, a further $1,750,000 in exploration expenditures and either pay Pelangio $400,000 in cash or issue to Pelangio such number of shares of First Mining equal to $400,000 divided by the market price of First Mining shares on the day immediately prior to the date of issuance. Gold Canyon and Pelangio shall form a 51%/49% joint venture with respect to the Birch Lake Project if the 51% earn-in is completed and the second earn-in is not completed. If the second earn-in is completed, Gold Canyon and Pelangio shall form an 80%/20% joint venture with respect to the Birch Lake Project.



Figure 1: Claim Map



Birch Lake Property, Red Lake District

Pelangio's Birch Lake property is located within the Birch-Uchi Greenstone Belt, approximately 120 km northeast of the town of Red Lake, Ontario. Within an eight km radius of the Birch Lake property, there is a large gold resource (Springpole Deposit) and a past producer (Argosy Mine) which produced 101,875 ounces of gold at an average grade of 0.37 ounce per ton (reference: Ontario Geological Survey Open File Report 5835). Over the last decade, significant exploration was conducted in this area by Gold Canyon on the Springpole Deposit, now controlled by First Mining. The Pelangio land holdings are contiguous....
cont....


https://www.pelangio.com/news-releases/2021/pelangio-exploration-options-birch-lake-project/

https://www.pelangio.com/

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