news out TORONTO, ON / ACCESSWIRE / January 22, 2019 / Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) ("Pelangio" or the "Company")is pleased to announceit has entered into an option agreement to acquire a 100% interest in the Dome West property located in Tisdale Township, Timmins Ontario, from Mr. Francois Desrosiers and 6398651 Canada Inc. The Dome West property comprises 10 mining cells covering 56 hectares and is strategically located adjacent to both Goldcorp's Dome Mine property and the former Paymaster Mine property.
Highlights of the Dome West property
- Mineral rights to 10 mining cells covering approximately 56 hectares
- Located in the Timmins - Porcupine Gold Camp
- 800 metres west of the Dome Mine open pit
- Adjacent to both the Dome Mine property and the former Paymaster Mine property
"The Dome West property is a major acquisition for Pelangio. It is located in a geologically significant area just 800 metres from the historic Dome Mine, one of the largest and well-known gold producers in Canada",commented Ingrid Hibbard, President and CEO of Pelangio. "Planning is underway for a first-phase diamond drill program to be carried out this winter. The Dome West project complements our recently acquired Dalton project, located 1.5 km west of Goldcorp's Hollinger Mine."
Terms of the Option Agreement and Work Commitment:
In order to acquire a 100% interest in the Dome West property, Pelangio must make the following cash payments and share issuances (33 1/3% to Francois Desrosiers and 66 2/3% to 6398651 Canada Inc.) and complete a total of $750,000 in exploration expenditures in accordance with the following schedule:
| Share
Issuance | Cash
Payments | Work
Commitment | Year |
| 150,000 shares | $15,000 | | On the date the agreement is accepted by the TSXV |
| | | $110,000 | Before the first anniversary of the acceptance date. |
| 150,000 shares | $30,000 | | On or before the first anniversary of the acceptance date |
| | | $115,000 | Before the second anniversary of acceptance date. |
| 100,000 shares | $75,000 | | On or before the second anniversary of the acceptance date |
| | | $225,000 | Before the third anniversary of acceptance date. |
| 100,000 shares | $100,000 | | On or before the third anniversary of the acceptance date |
| | | $300,000 | Before the fourth anniversary of acceptance date. |
| 500,000 shares | $220,000 | $750,000 | |
Pursuant to the terms of the option agreement, Pelangio will be the project operator. Upon exercise of the option, Pelangio will grant Francois Desrosiers and 6398651 Canada Inc. a 3% Net Smelter Return (NSR) Royalty, subject to the right to purchase a 1% NSR royalty for $1,000,000.
The Dome West Property
The Dome West property, formerly controlled by Central Porcupine Mines Ltd., is a strategic land holding that is adjacent to both the former Paymaster Mine property and Goldcorp's Dome Mine (Source: Ont. Dept of Mines Map 449B, Ferguson, 1969). The Dome West property is located approximately 800 metres west of the Dome Mine (See Maps 1 and 2: Location of the Dome West property in reference to the Dome Mine and other strategically located mine properties with historical production, shown below).
Pelangio intends to evaluate a highly prospective porphyritic sill unit interpreted to extend across a substantial portion of the Dome West property at the 1000-foot elevation from the former Paymaster Mine property (Source: Ont. Dept of Mines Map 449B, Ferguson, 1969 and OGS Assessment File T-125). Upon receipt of any necessary surface access permission for exploration work on the property, the first-phase diamond drill program will begin this winter.
Qualified Person
Mr. Kevin Filo, P.Geo. (Ontario), is a qualified person within the meaning of National Instrument 43-101. Mr. Filo has verified and approved the data disclosed in this release.
Map 1: Location of the Dome West property in reference to the Dome Mine and other strategically located mine properties
image: https://www.accesswire.com/users/newswire/images/533247/01222019PEL2.jpg
Map 2: Regional geology of the Timmins area showing the location of the Dome West and Dalton properties in relation to the Dome and Hollinger Mines
image: https://www.accesswire.com/users/newswire/images/533247/01222019PEL.png
About Pelangio
Pelangio acquires and explores large land packages in world-class gold belts in Canada and Ghana, West Africa. In Canada, the company is focusing on the Dome West property located 800 metres from the Dome Mine in Timmins, the 25 km2 Birch Lake Property located in the Red Lake Mining District and the Dalton Property located 1.5 km from the Hollinger mine in Timmins. In Ghana, the Company is focusing on two 100%- owned camp-sized properties: the 100 km2 Manfo Property, the site of seven recent near-surface gold discoveries, and the 284 km2 Obuasi Property, located 4 km on strike and adjacent to AngloGold Ashanti's prolific high-grade Obuasi Mine. Ghana is an English-speaking, common law jurisdiction that is consistently ranked amongst the most favourable mining jurisdictions in Africa.
For additional information, please visit our website at www.pelangio.com, or contact:
Ingrid Hibbard, President and CEO
Tel: 905-336-3828 / Toll-free: 1-877-746-1632 / Email: info@pelangio.com
Forward Looking Statements
Read more at https://www.stockhouse.com/news/press-releases/2019/01/22/pelangio-exploration-acquires-dome-west-property-adjacent-to-the-dome-mine#2q0YCyzEBItlPTfc.99