Corporate Update ON Our Pl MINE Restart Plan, Additional 2021 Assay Results, Issuance of Broker Warrants IN Connection with Non-Brokered Offering and Option Grant
Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 217 Queen Street W., Suite 401
www.minnovacorp.ca Toronto, Ontario M5V 0R2
Minnova Corp.
CORPORATE UPDATE ON OUR PL MINE RESTART PLAN,
ADDITIONAL 2021 ASSAY RESULTS, ISSUANCE OF BROKER WARRANTS in
CONNECTION with NON-BROKERED OFFERING and OPTION GRANT
NOT FOR DISSEMINATION INTO THE UNITED STATES
March 17, 2021, Toronto, Ontario – Minnova Corp. (TSXV: MCI, OTC Pink: AGRDF, "Minnova”
or the “ Company”), a discovery -stage exploration and advanced development -stage gold
company focused on the expansion and restart of our 100% owned PL Gold Mine in central
Manitoba is pleased to provide and update on our restart plan , latest assay results and positive
implications for resource expansion potential.
PL Mine Restart Work Programs: Planning has been comprehensive and is ongoing in parallel
to finance discussions in support of the restart of the PL Gold Mine. The PL Mine is permitted for
quick restart and we are advancing discussions with qualified contractors and service providers
including;
• Mine restart upcoming/planned work programs;
o Surface bulk sample
o Ore sorting characterization study and follow-on test work
o Updated metallurgical test work with focus on gravity concentration recovery
o Completion of grid power connection
o Water treatment design and implementation
o Paste back fill design and implementation
o New northern portal and decline plan, design and implementation
o Camp expansion and upgrades
o Detailed engineering
o Equipment considerations and selection
o Contract mining
o Personnel/labour additions
As we move forward with above programs it is important for shareholders to understand and
appreciate that the 2017 Feasibility Study (“2017 FS”) outlined what management and board view
as the Phase 1 (“P-1”) restart plan was completed using a base case gold price of US$1250 per
ounce in support of an initial 5 year mine life, processing up to 600 t/d, producing an average of
46,000 ounces of gold annually at all -in sustaining costs of US$948 per oz. Initial mine restart
and site refurbishment capital cost was estimated at C$35.4 million.
The P-1 mine restart plan has considerable leverage to current higher gold price (see January 7,
2021 Press Release http://minnovacorp.ca/2021-01-07-NR-MCI.pdf), in support of our efforts to
restart mining operations . Free cash flow generated by the P -1 restart plan will enable the
company to internally fund o ur Phase 2 (“P -2”) program to extend the mine life through an
aggressive resource expansion, production expansion and exploration programs.
Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 217 Queen Street W., Suite 401
www.minnovacorp.ca Toronto, Ontario M5V 0R2
In advance of the P-2 program the Company plans to initiate the permitting process for the satellite
Nokomis deposit. Initial work would include an archaeological study and environmental data
collection. Nokomis hosts a shallow open pit Indicated resource of 371,000 tonnes at a grade of
3.41 g/t gold (40,700 ounces contained gold) and an open pit Inferred resource of 247,000 tonnes
at a grade of 2.41 g/t gold (19,100 ounces contained gold) (see Note 1 below). The potential to
development of Nokomis as a satellite mining operation offers additional near-term resource and
production expansion if it can be successfully permitted and developed.
The PL Mine site is permitted under Environment Act 1207E , which allows for relatively quick
restart of mining operations via the exiting portal and decline located at the southern end of the
deposit. Processing would be caried out on site at the existing permitted 1000 tpd mill.
Gorden Glenn, President & CEO commented “Positive results from ongoing PL North drilling, on
a preliminary basis, supports some modifications to the P -1 restart plan. New initiatives include
a surface bulk sample on the PL North Upper Zone to be followed by a new exploration portal and
decline i n support of an aggressive underground exploration, development, and test mining
programs to further advance the project. In addition, the company is considering an o re sorting
characterization study and updated metallurgical test work. New studies will look closely at new
gravity recovery technologies that were not available during prior operations . The PL deposit
contains significant free gold that offers potential for onsite gravity concentration equipment
testing and gold recovery during our planned bulk sampling test programs.”
Project Finance Update: Minnova continues to advance project finance discussions with various
groups in preparation for the restart of the PL Gold Mine. Discussions include project debt and
equity financing alternatives. At current gold price the project is robust and fully supports a go it
alone funding strategy with attractive payback and loan repayment characteristics. Management
and board are fully aware of the challenges faced by smaller, single mine operators and are
considering all options in support of maximizing the value proposition that the PL Mine represents
to shareholders. As such we are also considering M&A or other alternative financing structures
that would provide the funding requirements to fully fund the P -1 restart plan as detailed in the
2017 Feasibility Study, subject to alterations based on recent positive drill results.
Additional Assay Results: In addition to positive initiatives with respect to project development
and funding we are also pleased to announce latest assay results from the ongoing 2021 drilling
program. All results are from the PL North Target area, which lies outside the existing 2017
resource and reserve estimate and is the northwest extension of the main PL deposit trend.
Upper and Lower Zone structures were intersected in all holes and returned positive results
including high grade, near surface and deeper gold mineralization.
Gorden Glenn, President and CEO commented “ PL North drilling has opened up significant
resource expansion potential and new development options as noted above. The Upper Zone
can be traced for over 300m on strike from the main PL Deposit resource and remains open on
strike and down dip. The deepest Minnova drill hole on the Upper Zone to date intersected high
grade gold mineralization at a relatively shallow depth of approximately 40 meters (Hole M-17-
053 which intersected 1.0 meter at a grade of 13.5 g/t (duplicate sample returned a grade of 78.7
g/t)) and remains open down dip . There is a deeper historic intersection located approximately
500 meters down dip that is interpreted to be a down dip extension of the Upper Zone (PUF-214,
Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 217 Queen Street W., Suite 401
www.minnovacorp.ca Toronto, Ontario M5V 0R2
located on the PL Mill site) that intersected 4.8 g/t over 0.5 meters surrounded by 6.5 meters (core
length) of anomalous gold mineralization. Like the PL North shallow drilling completed by the
Company, PUF-214 occurs outside of the current PL deposit resource and highlights the potential
to extend mineralization down dip.” See Figure 1 for location of PL North Drilling at the following
link http://minnovacorp.ca/Figure-1-March-17-2021-Press-Release-PL-North-Drill-Loc.pdf
Table 1: Selected Assay Results (>2.00gpt) from the 2021 PL Mine Drill Program
Hole Location Sample Type From (m) To (m) Length(m) Au gpt
M-21-068 373001E/6100971N Half-split 83.00 84.00 1.00 3.55
M-21-069 373006E/6100972N Half-split 16.50 17.00 0.50 2.33
Half-split 80.50 81.26 0.76 2.59
Half-split 81.26 81.97 0.71 9.10
Half-split 81.97 82.75 0.78 7.67
Half-split 108.90 109.85 0.95 27.44
Half-split 139.00 140.00 1.00 4.87
M-21-072 373012E/6101015N Half-split 97.00 98.00 1.00 2.71
Half-split 98.00 98.80 0.80 2.26
Half-split 120.90 121.4 0.50 2.13
M-21-074 373082E/6100995N Half-split 56.00 57.00 1.00 2.06
Half-split 117.00 118.00 1.00 23.05
Half-split 138.00 139.00 1.00 6.06
M-21-075 373082E/6100994N Half-split 46.00 47.00 1.00 2.13
Half-split 61.00 62.00 1.00 3.67
Half-split 123.00 124.00 1.00 8.01
Half-split 133.00 134.00 1.00 8.39
Half-split 138.00 139.00 1.00 2.67
Half-split 139.00 140.00 1.00 2.71
M-21-077 373171E/6100964N Half-split 144.70 145.70 1.00 10.55
M-21-078 372984E/6100952N Half-split 6.00 7.00 1.00 2.26
Half-split 43.00 44.00 1.00 9.41
Half-split 51.00 52.00 1.00 2.47
Half-split 78.00 79.00 1.00 2.37
Half-split 80.00 81.00 1.00 2.02
M-21-079 373008E/6100911N Half-split 51.00 52.00 1.00 2.37
Half-split 52.00 53.00 1.00 12.89
M-21-080 373009E/6100911N Half-split 54.66 55.16 0.50 12.76
Further to Company’s press releases of January 7, 2021, January 25, 2021, and February 4,
2021, the Company has paid certain eligible persons (each, a “Finder”): (i) a cash commission in
the aggregate of $26,894; and (ii) an aggregate of 119,000 broker warrants (each, a “ Broker
Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 217 Queen Street W., Suite 401
www.minnovacorp.ca Toronto, Ontario M5V 0R2
Warrant”). Each Broker Warrant is exercisable into common shares in the capital of the Company
(each, a “ Common Share”) at a price of $0.35 per Common Share unit February 4, 2023 in
connection with the non-brokered private placement. All securities issued pursuant to the offering
will be subject to a statutory hold period of four months plus a day from the date of issuance in
accordance with applicable securities legislation. The closing of the offering is subject to certain
conditions including, but not limited to, the receipt of all necessary regulatory and other approvals,
including the approval of the TSX Venture Exchange.
The Company also wished to announce it has granted an aggregate of 1,0 50,000 options to
purchase common shares of the Company exercisable at a price of $0.30 per common share for
a period of 5 years, to certain directors, officers, employees and consultants. The common shares
issuable upon exercise of the options are subject to a four month hold period from the original
date of grant.
QA/QC
All samples were sawn and separated with one half being returned to the core box for reference
and the other being bagged in a plastic sample bag which was labeled, tagged, documented and
sealed. All core samples were placed in labelled rice sacks and seal ed with a security zip -tie.
Samples were delivered to TSL Laboratories Inc. in Saskatoon, Saskatchewan. Receipt of the
samples was signed off at the preparation lab and was tracked by the Company. Pulps of each
sample were prepared and followed by fire assay and gravimetric analysis, if required. A QA/QC
program including the regular insertion by the Company of duplicates, blanks and standards was
instituted.
Sample lengths varied according to geology and mineralization with quartz veins regularly
sampled.
Note 1: Nokomis NI 43-101 mineral resource estimate w as prepared by Leon McGarry, B.Sc.,
P.Geo., of CSA Global Pty Ltd., and is contained in the Technical Report entitled Feasibility Study,
PL Gold Project, Manitoba, Canada filed on SEDAR on May 4, 2018.
About Minnova Corp.
Minnova Corp. is an emerging Canadian gold producer focused on restarting the PL Gold Mine
and expanding gold resources on its PL and Nokomis gold deposits. The Company has completed
a Positive Feasibility Study in support of restarting the PL Mine at an average annual production
rate of 46,493 ounces over a minimum 5 year mine life. The resource remains open to expansion
and future surface exploration work programs will target resource expansion. The PL Gold Mine
has a relatively short pre -production timel ine forecast at 15 months, benefits from a valid
underground mining permit (Environment Act 1207E), an existing processing plant, over 7,000
meters of developed underground ramp to -135 metres depth, is fully road accessible and close
to existing mining infrastructure in the prolific Flin Flon – Snow Lake Greenstone Belt of Central
Manitoba.
Minnova Corp. Office: +1 647 985 2785
MCI:TSXV 217 Queen Street W., Suite 401
www.minnovacorp.ca Toronto, Ontario M5V 0R2
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
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, information 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, environmental and permitting risks, access to labour and
services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ
materially from those anticipated in the forward looking statements. A feasibility 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 Minnova
has attempted to identify important factors that could cause actual results 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.