Toronto, Ontario--(Newsfile Corp. - June 10, 2024) - Palamina Corp. (TSXV: PA) (OTCQB: PLMNF) has signed a Share Purchase Agreement (the "Agreement") to acquire 100% of the shares of Sociedad Minera Vicus Exploraciones S.A.C. ("Vicus") from Aurania Resources Ltd. (TSXV: ARU) for a consideration of 350,000 common shares of Palamina and a 1% Net Smelter Return ("NSR") royalty. Palamina may buy back half of the NSR for $1,000,000. Palamina has an "acquire and hold" strategy for its existing copper silver projects in south eastern Peru and the secured Vicus Pluma copper silver project in north eastern Peru. Closing of the Vicus transaction is expected to be completed by the end of June. Palamina remains focused on the upcoming drilling program at its Usicayos gold project in the Puno region in south eastern Peru.
Palamina, on closing of the Vicus purchase, will secure 100% ownership of the Pluma sediment-hosted copper silver project which covers 9,800 hectares north and contiguous to Hannan Metals Limited's ("Hannan") San Martin Copper Silver Project. Hanna's San Martin is subject to an earn-in with the Japan Organization for Metals and Energy Security ("JOGMEC"). JOGMEC has the option to earn up to a 75% beneficial interest in the San Martin JV Project from Hannan by spending up to US$35,000,000 to deliver a feasibility study or completing certain expenditure milestones. Hannan is reportedly planning to carry out an inaugural 2,000m drill program at San Martin in 2024.
Both Aurania and Hannan were early movers in staking prospective copper silver prospects in north eastern Peru with the potential for basin-scale mineral systems that share geological similarities with sedimentary copper silver deposits including the vast Kupferschiefer deposits in Eastern Europe and deposits of the African Copper Belt situated in southern Africa, two of the largest copper districts in the world.
"On closing of the Vicus transaction, Palamina will secure 100% of the Pluma copper silver project contiguous and north of Hannan's San Martin copper silver JOGMEC JV Project where an inaugural drill program is reportedly planned in 2024. Hannan's drill program is designed to test the theory that the red-bed strata located in proximity to salt domes (acting as a conduit for mineralization) has the potential to host world class sedimentary copper silver deposits. Inaugural drill discovery programs are also being carried out in the Sol de Oro zone at Palamina's Usicayos gold project and in the Coritiri zone at Winshear's Gaban gold project in 2024. Palamina holds a 15.4% equity position in Winshear and a 2% NSR royalty on all their projects. Securing the Pluma copper silver project will provide Palamina shareholders exposure to the San Martin district where a third drill discovery program is planned by Hannan seeking to confirm a new world-class copper-silver district in Peru," commented Andrew Thomson, President of Palamina.
The Pluma block of mineral concessions, within the San Martin region of northeastern Peru, cover prospective geology, including large salt domes which could be the source of mineralizing brines in this kind of environment. Vicus has acquired 2D seismic data over northeastern Peru, which was collected by the state-owned oil company, facilitating the identification of further diapiric salt structures with additional mapping of prospective stratigraphy in an area with abundant forest cover.
At Hannan's San Martin copper silver project, drilling is planned on the northern block of their claims where reduced shales within a thick continental red-bed sequence hosts stratabound copper silver occurrences. Compression of the red-bed basins seems to be a key element in mobilizing fluids. Compression would result in sub-horizontal cracks opening, facilitating fluid flow along sedimentary beds.
Hannan's San Martin project and Palamina's secured Pluma concessions occur in the same northwest trending fold-thrust belt in which both northeast and southwest verging faults occur. Salt domes and their associated emplacement structures are viewed as conduits for potential mineralization located along antiformal axes where they intrude mainly in mudstone and siltstone sequences of the Upper Jurassic Sarayaquillo Group and coarse-grained sandstone of its Cushabatay Member.
Location of Palamina's secured Pluma copper silver project area
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The Pluma copper silver concessions cover a northwest trending antiform extending from the northern end of Hannan's San Martin project, the core of which is composed of Sarayaquillo Group sedimentary rocks. Government maps show a salt dome in the southwest corner of the Pluma claim block. The Pluma claims have road access where an initial site visit by Aurania reportedly identified gossanous material with relict pyrite casts and suspected malachite staining within veinlets hosted in sandstone of the Cushabatay Member. Palamina plans to carry out an initial reconnaissance mapping and sampling program before the start of the rainy season in November.
Technical Information
The technical information herein has been reviewed and approved by Alvaro Fernandez-Baca (P. Geo.); a Qualified Person as defined by National Instrument 43-101. Mr. Fernandez-Baca is Vice President of Exploration to Palamina.
About Palamina Corp.
Palamina is a gold exploration company with a land bank of gold projects in the Puno Orogenic Gold Belt in south-eastern Peru. Palamina is set to commence a drill program at its Usicayos gold project. Palamina holds a 15.4% equity interest in Winshear Gold Corp. (TSXV: WINS). Winshear are scheduled to conduct an inaugural drill program at their Gaban Gold Project in 2024. Palamina also has an "acquire and hold" strategy with copper silver assets in the Santa Lucia district in south eastern Peru and an Agreement to purchase Vicus and all of its assets including the Pluma copper silver project in the San Martin district in north eastern Peru. Palamina has 71,284,836 shares outstanding and trades on the TSX Venture Exchange under the symbol PA and on the OTCQB Venture Market under the symbol PLMNF.
On Behalf of the Board of Directors:
Andrew Thomson, President
Phone: (416) 204-7536 or visit www.palamina.com
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.
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements include, but are not limited to, the use of proceeds of the Offering and the Company's future business plans. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. A more complete discussion of the risks and uncertainties facing the Company appears in the Company's continuous disclosure filings, which are available at www.sedar.com.
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