2020-12-03 - Prismo Metals Announces Agreement for Acquisition of 100% of the Palos Verdes Property and Commencement of Drill Program
Prismo Metals Announces Agreement for
Acquisition of 100% of the Palos Verdes
Property and Commencement of Drill Program
Vancouver, British Columbia--(Newsfile Corp. - December 3, 2020) - Prismo Metals Inc. (CSE: PRIZ)
(the "
Company
" or "
Prismo
") is pleased to announce that it has entered into an option agreement to
acquire the remaining 25% interest that it does not already control in the Palos Verdes project, located in
the Concordia Municipality of the state of Sinaloa, Mexico (the "Option Agreement"). The Option
Agreement gives the Company control of 100% of the concession that makes up the project.
Under the terms of the Option Agreement, the Company will pay the optionor an aggregate of
US$250,000 in cash over a four-year period, with the initial payment of US$30,000 made on signing.
Additionally, 100,000 warrants will be awarded, with each warrant entitling its owner to purchase one
common share of the Company at an exercise price of CAD $0.35 per share for two years from the date
of execution of the Option Agreement, and subject to regulatory approvals.
Execution of a parallel
agreement assigning the rights of the concession to a Mexican subsidiary of Prismo being incorporated
is in progress.
Prismo also announces it has commenced a minimum 500-metre drilling program with mobilisation of
the drill to the site. Results should be available in early 2021.
The drilling program will consist of four to five holes, with the longest planned at 150-175m. Targets are
to test the vein lateral to, and below, high-grade intercepts drilled in May 2018. The best intercept from
that program was 8.4 g/t Au and 2,336 g/t Ag, over 0.8m true width (See Prismo press release of
September 30, 2020). The mineralized intervals reported are similar to many of those reported by Vizsla
Resources Corp. from veins further west in the same district.
About Palos Verdes
The Palos Verdes project is located in the historic Pánuco-Copala silver-gold district in southern
Sinaloa, Mexico, approximately 65 kilometers NE of Mazatlán, Sinaloa, in the Municipality of Concordia.
The Palos Verdes concession (claim) covers 700 meters of strike length of the Palos Verdes vein, a
member of the north-easterly trending vein family located in the eastern part of the district outside of the
area of modern exploration. Shallow drilling (<100m) conducted in 2018 on the Palos Verdes Vein was
targeted 30 to 50 meters beneath largely barren vein outcrops and cut a well mineralized multistage vein
two to seven metres wide with narrow intervals of high-grade precious metal values and subordinate
base metals (
see
table of intercepts at www.prismometals.com).
This mineralization is open in all
directions and the currently planned drilling program is designed to follow it along strike and to depth.
About Prismo
Prismo is engaged in mineral exploration and the acquisition of mineral property assets in Mexico. The
Company has an option to acquire a 75% interest in the Palos Verdes Property, which lies within the
historic high-grade silver-gold Pánuco-Copala Mining District in northwestern Mexico where Vizsla
Resources Corp. have reported considerable success recently. Palos Verdes currently constitutes the
material property of the Company.
For more information, please refer to the Company's prospectus dated September 8, 2020 available on
SEDAR (
www.sedar.com
).
Qualified Person
Dr. Craig Gibson, Ph.D., the President and Chief Executive Officer of the Company, a Qualified Person
under NI 43- 101 -
Standards of Disclosure for Mineral Projects
, has prepared and approved the
technical content of this release.
On Behalf of the Board of Directors
Craig Gibson
Chief Executive Officer, President and Director
For further information, please contact:
Jason Frame
Investor Relations
(587) 225-2599
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain forward-looking statements and forward-looking information
(collectively, "
forward-looking statements
") within the meaning of applicable Canadian securities
legislation. All statements, other than statements of historical fact, included herein including, without
limitation, statements regarding future capital expenditures, anticipated content, commencement, and
cost of exploration programs in respect of the Company's projects and mineral properties, anticipated
exploration program results from exploration activities, resources and/or reserves on the Company's
projects and mineral properties, and the anticipated business plans and timing of future activities of the
Company, are forward-looking statements. Although the Company believes that such statements are
reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not
always, forward looking information can be identified by words such as "will", "pro forma", "plans",
"expects", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates",
"believes", "potential" or variations of such words including negative variations thereof, and phrases that
refer to certain actions, events or results that may, could, would, might or will occur or be taken or
achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company to differ materially
from any future results, performance or achievements expressed or implied by the forward-looking
statements. Such risks and other factors include, among others, statements as to the anticipated
business plans and timing of future activities of the Company, including the Company's option to acquire
a 75% interest in and to the Palos Verdes Property, the proposed expenditures for exploration work
thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans,
delays in obtaining governmental and regulatory approvals (including of the Canadian Securities
Exchange), permits or financing, changes in laws, regulations and policies affecting mining operations,
the Company's limited operating history, currency fluctuations, title disputes or claims, environmental
issues and liabilities, as well as those factors discussed under the heading "
Risk Factors
" in the
Company's prospectus dated September 8, 2020 and other filings of the Company with the Canadian
Securities Authorities, copies of which can be found under the Company's profile on the SEDAR website
at
www.sedar.com
.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company
undertakes no obligation to update any of the forward-looking statements in this presentation or
incorporated by reference herein, except as otherwise required by law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/69435