/NOT FOR DISTRIBUTION TO
CSE – MICH
About the
The Pecoy project is located within the Peruvian coastal desert region which grades into the Atacama desert further south in Chile. Topography within the project area ranges from 800m at the Rio Ocoña, to slightly more than 4,000m at the highest ridges. Within the area of mineralization, the relief ranges from 1650m to 2200m. There is no infrastructure in the immediate project area, but water is available from the Rio Ocoña delta some 8 km to the west, and power is available from the national grid 100 km from site. The site also has excellent road access to a number of nearby seaports for shipping of concentrates.
The combined Project area consists of approximately 13,300 hectares. Exploration on the Property dates back to 2009, and consists of 48,500m of diamond drilling in 121 drill holes completed by previous operators including Pembrook. The project database consists of 1,222 downhole surveys, and 23,210 assays. The average drill spacing is about 118m in the main mineralized zone on the Pembrook property, and 80m on the Minandex (Ocaña) side. The project database also includes quality control data including blanks, standards and duplicates.
In 2018 Pembrook engaged
These assumptions led to two historical mineral resource estimates as shown in Table 1 below.
Table 1
Historical Inferred Mineral Resource Estimates as reported by
Scenario | k Tonnes1 | Cu (%) | Mo(%) | Au (ppm) | Ag (ppm) |
Pembrook Only | 473,000 | 0.33 | 0.012 | 0.03 | 1.18 |
Pembrook/Ocaña | 721,000 | 0.34 | 0.011 | 0.05 | 1.27 |
Notes: |
1 – above a cutoff of 0.25% Cu |
2 – based on the following metal prices – Cu ( |
3 – based on the following metal recoveries - Cu (88-90%), Mo (70-72%), Au (40-54%), Ag (52-80%) |
4 – the Qualified Person for this estimate is |
5 – Effective date of the resource estimate is |
The Micon estimate was prepared to CIM (
The Company considers the Micon 2018 estimate to be a historical estimate since it was never filed on SEDAR. It should be noted that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the Company is not treating the historical estimate as current mineral resources.
The Company intends to verify the historical estimate and has carried out a site visit to the
Transaction Details
The Transaction will constitute a reverse take-over of Mich when completed. The Company intends on seeking approval for the listing of the Company's shares on the
As consideration for Pembrook and Minandex's interests in the
Pursuant to the Definitive Agreements, completion of the Transaction is subject to a number of conditions, including but not limited to: (i) the approval of all regulatory bodies having jurisdiction in connection with the Transaction (including Exchange approval); (ii) completion of a subscription receipt financing for minimum aggregate proceeds of
It is anticipated (and without taking into account the Financing), that Minandex and the shareholders of Pembrook will hold approximately 70% of the approximately 173 million common shares of the Company (excluding dilutive securities) following closing of the Transaction (the "Resulting Issuer").
Upon completion of the Transaction, the Resulting Issuer will continue to carry on the business of exploration and development of the Pecoy Property under the Company's existing name or such other name as may be approved by the board of directors of the Resulting Issuer and the stock exchange.
Trading of the common shares of the Company has been halted, and will remain halted until closing of the Transaction which is currently targeted for December, 2021.
Further details of the Transaction and related transactions, including the proposed executive management and board of directors of the Resulting Issuer will be disclosed in future news releases.
The Qualified Person responsible for the technical content in this release is Dr
About the Company
The Company is a
About Pembrook
Pembrook is a
About Minandex
Minandex is a Peruvian public company with a head office located at Calle Arnaldo Alvarado Degregori #39, Surco,
On behalf of
"Mark T. Brown"
Chief Executive Officer
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: the proposed Transaction; the satisfaction of the conditions and closing of the Transaction (including Exchange and shareholder approvals); transfer of the
Although management of the Company believe that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: the Transaction may not close on the terms set forth herein, or at all; risks relating to the availability of financing for the Resulting Issuer; risks relating to the receipt of all requisite approvals for the Transaction, including the approval of the Exchange; risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in interest and currency exchange rates; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); political risk and social unrest; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting mining concessions); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays in the supply of equipment and services; and other risk factors as detailed from time to time.
The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Reader Advisory
Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company and Resulting Issuer should be considered highly speculative.
Neither the CSE or the Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in
SOURCE
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