Minnova Corp. Provides Corporate Update on the La Esperanza Discovery-Stage
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Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 365 Bay Street, Suite 400
www.minnovacorp.ca Toronto, Ontario M5H 2V1
MINN VA
CORP.
O
Minnova Corp. Provides Corporate Update on the La Esperanza Discovery-Stage
Gold Project in Peru, the PL Gold Mine, Minnova Renewable Energy and Debt
Settlement
April 3, 2019, Toronto, Ontario – Minnova Corp. (TSXV: MCI) ("Minnova” or the “Company”)
wishes to provide an update it on its La Esperanza discovery -stage project in Peru, various
business initiatives at the PL Gold Mine in Canada and its previously announced shares for debt
transaction, further to its news release dated January 31, 2019.
At the La Esperanza project in Peru, heavy seasonal rainfall has restricted access to the property
resulting in a delay in receiving our work permit. We hope to complete the permitting process by
May 2019 and following that initiate surface work programs of mapping, trenching and sampling.
This will be followed by a shallow drilling program and a series of small bulk samples from surface
and existing underground development. Bulk samples wi ll be processed at a local toll mill to
collect data on gold distribution and metallurgical characteristics. Additionally, we hope to
generate a small amount of cash flow from the sale of recovered gold , after considering bulk
sample extraction and processing costs.
We consider the La Esperanza project with its high-grade vein-hosted gold mineralization to be a
starting point in our broader regional exploration and development efforts. The district supports
numerous small -scale mines and employs thousands of miners. Our regional business
development strategy is focused on identifying additional mining and exploration properties in the
district for possible M+A or Joint Venture. In March 2019 we had the opportunity to attend a
meeting with over 400 miners in attendance where we presented our company and our strategy.
Follow-up discussions with business and community leaders was positive and we are encouraged
by our initial progress.
At the PL Gold Mine the Metallic Screen Fire Assay (“MSFA”) check assay program, initiated in
2018, continues with further results from the program expected before the end June 2019. As
previously reported on January 31, 2019 MFSA’s received to date have produced an average
positive variance in gold grades of 18% versus the Original Fire Assay (“OFA”) results. On
completion of the MSFA program we will be in a position to advance plans for a future bulk sample
and update current reserve and resource estimates for the PL Gold Deposit.
In addition to our various technical programs in support of our PL Gold Mine re -start plans we
continue to advance our planned biomass power generation business model that will be
associated with the PL Gold Mine re-start.
In 2018 we created a new Manitoba subsidiary called Minnova Renewable Energy (“MRE”). Our
business plan for MRE capitalizes on significant local and regional infrastructure, including; grid
power connection, all weather roads and underutilized railway infrastructure and future access to
various feedstocks typically used in biomass power generation. We firmly believe there is room
for alternative energy, as part of our overall energy demand requirements at the PL Gold Mine.
The re-start of the PL Gold Mine and an associated biomass power generating facility represents
a unique business opportunity to create a “hybrid mine” that not only reduces the mine’s carbon
footprint but also creates additional sustainable jobs and numerous other potential benefits to the
local community beyond planned mining operations and gold production.
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Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 365 Bay Street, Suite 400
www.minnovacorp.ca Toronto, Ontario M5H 2V1
MINN VA
CORP.
O
MRE is in the process of reviewing a ll available proven , green energy technologies and if
warranted will incorporate them into the PL Mine re -start plan. Sustainable green energy
generation technologies being reviewed include ; biomass power generation and lake-based
geothermal heating and cooling system for the mining camp.
The regional economy near the PL Mine site lacks sustainable employment opportunities and
Minnova hopes to promote job creation by developing a biomass power generating facility that
utilizes the region’s abundant harvestable resources under a sustainable forestry management
plan and other biomass feedstocks.
Finally, the Company has received conditional approval from the TSXV to settle an aggregate of
$500,000 in debt with arm's length and non-arm's length parties. Of this amount, $241,501 of the
indebtedness relates to the provision of management and director consulting services and fees
for an aggregate of up to 536,668 common shares, at a deemed price of $0.45 per common share,
which will be issued to the Company's CEO in full or partial settlement, as the case may be, of
the outstanding indebtedness. All securities issued pursuant to the Concurrent Debt Settlement
will be subject to a four-month statutory hold period in accordance with applicable securities
legislation.
The issue of the common shares in connection with the d ebt settlement remains subject to the
approval of the TSX Venture Exchange , and in the case of the Company's CEO , subject to
receiving disinterested shareholder approval , which the Company will be seeking at the next
annual and special meeting of the shareholders of the Company.
The Debt Settlement constitutes a related party transaction within the meaning of TSX Venture
Exchange Policy 5.9 and Multilateral Instrument 61 -101 (“MI 61-101”) as various insiders of the
Company received 981,112 common shares in connection with the Debt Settlement. The
Company is relying on the exemptions from the valuation and minority shareholde r approval
requirements of MI 61 -101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61 -101, as the fair
market value of the common shares being issued to insiders in connection with the Debt
Settlement does not exceed 25% of the market capitalization of the Company, as determined in
accordance with MI 61-101. The Company did not file a material change report in respect of the
related party transaction at least 21 days before the closing of the Debt Settlement because the
Company wanted to improve its financial position as expeditiously as possible.
Qualified Person
Mr. Chris Buchanan, M. Sc., P. Geo., a consultant of the Company and a “Qualified Person” under
National Instrument 43-101, has reviewed and approved the scientific and technical information
in this press release.
For more information please contact:
Minnova Corp.
Gorden Glenn
President & Chief Executive Officer
For further information, please contact Investor Relations at 647-985-2785 or
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Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 365 Bay Street, Suite 400
www.minnovacorp.ca Toronto, Ontario M5H 2V1
MINN VA
CORP.
O
Visit our website at www. minnovacorp.ca
Forward Looking Statements
This news release contains "forward -looking information" within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to, info rmation regarding the Company including management’s
assessment of future plans and operations, that may involve risks associated with mining exploration and development, volatility
of prices, currency fluctuations, imprecision of resource estimates, envir onmental and permitting risks, access to labour and
services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may dif fer
materially from those anticipated in the forward looking statements. A feas ibility study has not been completed and there is no
certainty the disclosed targets will be achieved nor that the proposed operations will be economically viable. Although Minn ova
has attempted to identify important factors that could cause actual result s to differ materially from those contained in forward -
looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place undue reliance on forward -looking information. Minnova
does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither 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.