TORONTO, Feb. 10, 2020 (GLOBE NEWSWIRE) -- Power Group Projects Corp. (the “Company” or “Power Group”) (TSX V: PGP, OTC Pink Sheets: CBBWF), is pleased to announce that they have entered into an agreement with RJK Explorations Ltd to pursue kimberlite targets that RJK may identify on Power Groups Project Corp. (PGPC) claims in the Cobalt, Ontario area.
The Exploration Agreement with RJK Explorations (“RJK”):
The term of the agreement will be for a period of three years from the date of acceptance. RJK will pay a fee of $12,000 cash per year for three years for a total of $36,000 to PGPC to enter into an agreement whereby RJK will have the right to identify, sample and drill test with one diamond drill hole any identified potential kimberlite targets (Phase One).
Should RJK determine that following it’s initial Phase One exploration to continue exploration to each and any identified target, then RJK and PGPC will enter into a Participating Joint-Operating Agreement whereby RJK would have 60% interest and PGPC would have a 40% interest.
RJK would then provide PGPC with a Phase two exploration budget, at which time, PGPC will have 60 days to agree to participate. RJK will place their 60% of the proposed budget into a lawyer’s trust account for the 60 days until the joint-venture is triggered. RJK will create a Mining Management Committee for the purposes of allowing all parties to better understand the exploration plans. This includes, review of budgets, proposed work and the hiring of consultants.
Should PGPC decide not to participate then it will be reduced to a carried 1.5% GORR of which fifty percent (0.75%) can be purchased for a cash payment of $1,000,000.
Should RJK find mineralized zones other than kimberlites, the structure of the agreement would revert to 50% for RJK and 50% for PGPC with RJK being the operator. RJK would then provide PGPC with a Phase two exploration budget, at which time, PGPC would have 60 days to agree to participate. RJK will place their 50% of the proposed budget into a lawyer’s trust account for the 60 days until such time the joint venture is triggered. Should PGPC agree to participate, a Management Mining Committee would be established.
If PGPC decides not to participate, then it will be reduced to a 1.5% NSR of which 50% (0.75%) may be purchased for $1,000,000
Subject to Phase two and exploration by RJK a two kilometer area of interest surrounding the identified target, subject to claim availability, would be made available by PGPC for exploration and development.
Should PGPC or any of its agents find economic minerals other than diamonds, then these claims on notice to RJK would be exempt from RJK having an interest.
About Power Group Project Corp.
Power Group Projects Corp. is a publicly traded Canadian exploration company listed on the TSX-Venture Exchange and U.S. Pink Sheets (TSX-V: PGP, OTC Pink: CBBWF) focused on energy metals. The Company has made a series of strategic property acquisitions over the past two years seeking cobalt mineralization near Cobalt, Ontario, a region with a long history of silver and associated cobalt production, and now in the Athabasca basin of Saskatchewan. The Cobalt Properties are held in a 100% wholly owned subsidiary named Cobalt Power Group Ltd. with holdings totaling approximately 19,826 hectares (48,991 acres) in contiguous and strategic claim blocks. There are several historic mining operations on the properties that are potentially accessible, including the Smith Cobalt shaft and its underground workings.
For further information: John Dyer, CEO, Tel: 647 946-2192
CAUTIONARY STATEMENT:
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This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Power Group Projects Corp. Forward-looking statements include estimates and statements that describe Power Group Projects Corp.'s future plans, objectives or goals, including words to the effect that Power Group Projects Corp. or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Power Group Projects Corp., Power Group Projects Corp. provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Power Group Projects Corp. objectives, goals or future plans, statements (including the terms, conditions and objectives of the Transaction), details of the exploration results, potential mineralization, the company's portfolio, treasury, management team and enhanced capital markets profile, the receipt of regulatory approvals for the Offering, the receipt of regulatory approvals of the Transaction, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure or inability to complete the Transaction and the Off on the terms as announced or at all, regulatory approval processes, failure to identify mineral resources, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in Power Group Projects Corp. public documents filed on SEDAR. Although Power Group Projects Corp. believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Power Group Projects Corp. disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
