Mg Capital and DLP Resources Signs Option Agreement to Earn 100% of the Nzou Property
MG CAPITAL and DLP RESOURCES SIGNS OPTION AGREEMENT TO EARN 100% OF
THE NZOU PROPERTY
Cranbrook, British Columbia, (Newsfile Corp. – August 20, 2020) – MG Capital Corporation (“MG” or the
“Company”) (TSXV:DLP) is pleased to announce that its wholly‐owned subsidiary, DLP Resources Inc. (“DLP”)
has entered into an option agreement (the “Option Agreement”) with 453999 BC Ltd. (the “Optionor”) in
relation to the NZOU (Na‐zoo) property located in British Columbia (the “NZOU Property”) held by the
Optionor. Pursuant to the terms of the Option Agreement, the Optionor has granted to DLP the option to
earn a 100% legal and beneficial interest in and to the NZOU Property (the “Option”).
The Option Agreement
Under the terms of the Option Agreement, DLP will earn a 51% interest in the NZOU Property by:
incurring exploration expenditures of $15,000 by December 1st, 2020;
the Company issuing 75,000 common shares of the Company (the “Shares”) to the Optionor within 20
days of the date upon which the TSX Venture Exchange approves the Option Agreement;
the Company issuing 75,000 Shares to the Optionor by February 28th, 2021;
incurring exploration expenditures of $50,000 by December 31st, 2021;
the Company issuing 75,000 Shares to the Optionor by February 28th, 2022; and
the Company issuing 75,000 Shares to the Optionor by February 28th, 2023.
DLP will earn a 75% undivided interest in the NZOU Property making a cash payment of $100,000 to the
Optionor by December 31st, 2024.
The Option will be fully exercised, and DLP will accordingly earn a 100% undivided interest in the NZOU
Property, upon the Company issuing 100,000 Shares to the Optionor by December 31st, 2025.
Following the exercise of the Option, the Optionor will be granted a royalty on the NZOU Property (the
“Royalty”), being equal to 2.0% of Net Smelter Returns on the NZOU Property. DLP will be entitled at any
time and from time to time to purchase up to 50% of the Royalty (being equal to 1.0% of Net Smelter
Returns on the NZOU Property) from the Optionor at a purchase price of C$1,000,000.
DLP may, at its option, accelerate the cash payments and issuances of the Shares described above in order to
fully exercise the Option prior to December 31st, 2025.
The Option Agreement and the completion of the transactions contemplated thereunder are subject to TSX
Venture Exchange approval.
The NZOU Property
The NZOU Property has potential to host a high‐grade Sullivan style deposit and is located adjacent to the NE
border of the recently drilled DD property (see the Company’s news release dated August 6th, 2020) near
Cranbrook, British Columbia, Canada (see Figure 1 below).
The Sullivan Deposit occurs at a geological horizon called the Lower‐Middle Aldridge Contact or “LMC”
horizon. A historic drill hole, IRISH‐05‐1, drilled on the NZOU Property in 2005 intersected Sullivan Time at a
depth of 1210 to 1342 metres.
In the assessment report of 2005 on the NZOU Property the following was concluded “This is the most
significant Sullivan Time intersection achieved to date in the Panda/Irishman creek area because it is: thicker;
consists of varied facies including a fragmental; contains more base metal sulphide; and is intruded by a
gabbro/granofels complex. The geochemical analyses of the core from 1223 to 1229 metres and 1262 to 1306
metres indicate the longest, best mineralized section is 1270 to 1306 metres – 36 metres of 689ppm Pb and
1297 ppm Zn. Within this is 6.0 metres of 1717 ppm Pb and 2725 ppm Zn. The highest one metre sample ran
0.29% Pb and 0.39% Zn. Similar but somewhat weaker mineralization continues within the footwall
fragmental, but this was not sampled. Collectively these features indicate this drill hole intersection is closer
to a vent system and a possible lead‐zinc‐silver deposit”.
Ian Gendall, President of DLP commented: “Now that we have a significant land package in a very prospective
part of the Purcell Basin for a Sullivan‐type target we are encouraged to follow‐up with additional
magnetotelluric (MT) geophysics and drilling. The additional MT planned and compilation of geological
sections across the areas, with current drill information from the DD property and additional information
from historic holes on the Moby Dick (DLP) and NZOU properties, will help us focus in on further drill targets
later this year and early next year”.
The foregoing geological disclosure and content of this news release has been reviewed and approved by
Dave Pighin, P.Geo. a qualified person for the purpose of National Instrument 43‐101 – Standards of
Disclosure for Mineral Projects. Mr. Pighin is the consulting geologist for DLP.
About DLP Resources Inc.
DLP Resources Inc. is a mineral exploration company operating in Southeastern British Columbia, exploring for Base Metals and
Cobalt. DLP is a wholly owned subsidiary of MG Capital Corporation listed on the TSX‐V, trading symbol DLP. Please refer to our web
site http://www.dlpresourcesinc.com.com for additional information.
Figure 1: Property map showing location of the NZOU Property
FOR FURTHER INFORMATION PLEASE CONTACT:
MG Capital Corporation
DLP Resources Inc.
Ian Gendall, President
Jim Stypula, Chief Executive Officer
Robin Sudo, Chief Financial Officer and Corporate Secretary
Telephone: 250‐426‐7808
Email: [email protected]
Email: [email protected]
Email: [email protected]
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.
Forward‐Looking Information
This News Release contains forward‐looking statements. Forward looking statements are statements which relate to future events. Forward‐looking
statements include, but are not limited to, statements with respect to exploration results, the success of exploration activities, mine development
prospects, completion of economic assessments, and future gold production. In some cases, you can identify forward‐looking statements by
terminology such as "may", “appears to”, "should", "expects", "plans", "anticipates", believes", "estimates", "predicts", "potential", or "continue" or
the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any
future results, levels of activity, performance, or achievements expressed or implied by these forward‐looking‐statements.
Although the Company and DLP have attempted to identify important factors that could cause actual actions, events or results to differ materially
from those described in forward‐looking statements, there may be other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward‐looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward‐looking
statements.