Palamina Completes the Sale of Two Peruvian Projects to Helio Resource Corp.
PALAMIN NA COMPL LETES THE SALE OF T TWO PERUV VIAN PROJE ECTS TO HELIO T RESOURCE E CORP.
| FOR IM | MEDIATE R | ELEASE: | 019 |
| Toronto, | Ontario - Sep | tember 19, 2 |
Palamina Corp. (the “C Company” o or “Palamina a”) (PA:TSX.V) is pleased d to announce e the closing of its previously
- Resource Corp. (“H
y announced d transaction n (the “Tr ransaction”) with Helio Helio”; any has sold 100% of the application a HRC:TSX X.V), whereby the Compa and mining ri ights to the G Gaban Gold and Tinka I.O.C.G G. Projects in n Peru to Heli io. In exchang ge Palamina w will receive a a total of 10 m million common shares of He elio (“Helio Shares”) and d a 2% Net Smelter Ret turn Royalty (“NSR”) on n each project. Helio retains s the right to
- buy back 1 1% of the NS SR for $1,00 00,000 per pr roject. A to otal of
5,000,000 0 Helio Shares have been is ssued to the C Company as o of today, with h the balance to be issued w within two years s of closing o on completion n of future eq quity financin ngs by Helio o or by way of f Helio shareh holder approval.
Helio will l make an Ad dvance Royalt ty Payment (A ARP) of CDN N$25,000 to P Palamina on t the first and se econd anniversar ries of closin ng of the Tran nsaction. Th he ARP will d double every y two years u until such tim me that es. Under the terms Helio has either compl leted a total o of 5,000m of drilling or ha as abandoned the propertie of the Tra ansaction, Pa alamina has a agreed to act as the operat tor of the tw wo projects fo or the first ye ear. In addition, Palamina will have the right to place one director r on the boar rd of director rs of Helio a and to ector to stand for election a nominate a second dire at the next ann nual general m meeting of H Helio.
Andrew T d a significant equity posit Thomson, Pre esident of Pala amina stated, “Palamina ha as established tion in Helio with the sale of two of its pr rojects and w will act as the operator as p part of a coll laborative eff fort to build valu ue in both Co ompanies thro ough discove ery. Palamina a’s Coasa an nd Helio’s Ga aban Gold Pr rojects stematic exploration or drilling. are both l located in the e Puno oroge enic gold belt t which has s seen little sys Palamina’
’s equity pos sition in Heli io also provid des Palamina a shareholder rs with partic cipation in H Helio’s applicatio on mining righ hts to the SMP orogenic go old project in Tanzania.”
source Corp. is a Vancou Helio Res uver based ju unior gold co ompany whose primary f focus has bee en the exploratio on and development of th he SMP orog genic gold pr roject in Tan nzania. Helio
- held 4 Rete ention
Licences w within the SM MP gold proje ect area until June of 2017 when change es to the Mining Act annou unced by the Tan nzanian gove ernment result ted in the Ret tention Licens se classificati ion being abo olished. As a r result, the groun nd covered by y the Retentio on Licences w was transferre ed to the Tan nzanian gover rnment. Helio
- has,
after cons sultation with h the Tanzan nian governm ment, re-applied for Prosp pecting Licen nces to replac ce the ground pr reviously held d under Reten ntion Licences s.
| Helio’s Gaban Gold Project covers 18,700 hectares made up of titled ground and application rights. | The | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Gaban go | ld project co | vers the tow | n of San Gab | an and hosts | excellent inf | rastructure fo | r building a | mine. | |
| The town | sits at a 550 | metre elevat | ion and is a | 4 hours drive | by the Trans | -oceanic hig | hway to the | Puerto | |
| Maldonad | o airport. Th | e San Gaban | hydro-electr | ic dam has a | 206 MW cap | acity and pro | vides power | to the | |
| town of S | an Gaban. |
| Over 10 s | ets of alluvi | al miners are | recovering | coarse | |||||
|---|---|---|---|---|---|---|---|---|---|
| gold from | the Yanama | yo river. Pal | amina compl | eted a heli-b | orne geophys | ical survey o | ver the Gaba | n and | |
| Cori gold | project in 20 | 18. Palamina | retained the | application m | ining rights | to the 18,500 | hectare Cori | Gold | |
| Project co | ntiguous and | south west o | f Helio’s Ga | ban Gold Pro | ject. |
| Helio’s T | inka Iron Ox | ide Copper- | Gold (I.O.C. | G.) Project co | vers 1,800 h | ectares mad | e up of appli | cation |
|---|---|---|---|---|---|---|---|---|
| rights and | is located a | t less than 2, | 000 m elevat | ion 45 km s | outheast of Ic | a, capital of | Ica Departm | ent & |
| 300 km s | outheast from | Lima along | the Pan-Ame | rican highwa | y. |
Mr. Alistair Waddell, BSc (Hons), a Member of the Australian Institute of Mining and Metallurgy (MAusIMM), is a director of Palamina Corp. He is a Qualified Person as defined by National Instrument 43-101 and has supervised the preparation, compilation and review of the geological and technical contents of this press release.
About Palamina Corp.
Palamina holds the application and mining rights to four gold projects in south-eastern Peru in the Puno Orogenic Gold Belt (POGB), a silver copper project in the Santa Lucia district and two copper-gold projects in Southern Peru. Palamina has 36,228,636 shares outstanding and trades on the TSX Venture Exchange under the symbol PA.
FOR FURTHER INFORMATION PLEASE CONTACT:
A Andrew Thomson, President Phone: (416) 987-0722 or visit www.palamina.com
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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