P2 Gold Amends Silver Reef Agreement
June 27, 2022 News Release 22-17
P2 Gold Amends Silver Reef Agreement
Vancouver, British Columbia, June 27, 202 2; P2 Gold Inc . (“P2” or the “Company”) (TSX -V:PGLD)
reports that, subject to regulatory approval, it has entered into an agreement (the “Amending
Agreement”) amending the terms of the option agreement (the “Option Agreement”) dated June 10,
2020 pursuant to which the Company can acquire up to a 100% interest in the Silver Reef Property
located in northwest British Columbia.
Under the terms of the Option Agreement, the Company initially has the right to acquire up to a 70%
interest in the Silver Reef Property by paying to the vendor over a three-year option period $750,000
and issuing 1.2 million common shares in its capital (“Common Shares”) as follows: $50,000 (paid) and
200,000 Common S hares (issued) on the signing of the Option A greement; $200,000 (paid) and
200,000 Common Shares (issued) on the first anniversary of the Option Agreement; and $500,000 and
800,000 Common Shares on the second anniversary of the Option Agreement. The Company is also
required to incur exploration expenditures of $250,000 (incurred) before the first anniversary of the
Option A greement, $750,000 (incurred) of cumulative exploration expenditures by the second
anniversary of the Option Agreement and $2 million of cumulative exploration expenditures by the
third anniversary of the Option Agreement.
Under the terms of the Amending Agreement, in place of paying the vendor $500,000 and 800,000
Common Shares on the second anniversary of the Option Agreement, the Company will now pay the
vendor: $175,000 (in cash or Common Shares valued at $0.50 per share) and 300,000 Common Shares
following TSX Venture Exchange (the “Exchange”) acceptance for filing of the Amending Agreement;
$175,000 (in cash or Common Shares valued at the greater of the closing price of the Common Shares
on the Exchange on June 9, 2023 and the Discounted Market Price, as defined in Exchange Policy 1.1)
and 300,000 Common Shares on June 12, 2023; and $200,000 (in cash or Common Shares valued at the
greater of the closing price of the Common Shares on the Exchange on June 7, 202 4 and the
Discounted Market Price) and 200,000 Common Shares on June 10, 2024. In addition, the Company
has until September 30, 2024 to incur any remaining exploration expenditures at Silver Reef.
Following exercise of the option and earning a 70% interest in the Silver Reef Property , the Company
has the right for a period of 120 days to acquire the remaining 30% interest in Silver Reef, for a 100%
total interest, on payment of $7.5 million of which up to $4 million may be paid in Common Shares at
its election. If the Company elects to not purchase the remaining 30% interest, the Company and the
vendor shall form a joint venture, with the Company appointed the operator. During the first three
years of the joint venture, the Company will fund the vendor’s participating interest in the joint
venture. If the vendor fails to sell its interest in the joint venture during such three -year period, the
vendor’s interest will convert to a 3% net smelter returns royalty, provided that the Company will have
the opportunity to purchase the vendor’s interest prior to such conversion for $7.5 million.
2 | P a g e
About P2 Gold Inc.
P2 is a mineral exploration and development company focused on advancing precious metals and
copper discoveries and acquisitions in the western United States and British Columbia.
For further information, please contact:
Joseph Ovsenek
President & CEO
(778) 731-1055
P2 Gold Inc.
Suite 1100, 355 Burrard Street
Vancouver, BC
V6C 2G8
(SEDAR filings: P2 Gold Inc.)
Michelle Romero
Executive Vice President
(778) 731-1060
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities
laws that is intended to be covered by the safe harbours created by those laws. “Forward -looking
information” includes statements that use forward -looking terminology such as “may”, “will”,
“expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations
thereof or comparable terminology. Such forward-looking information includes, without limitation,
information with re spect to the Company’s expectations, strategies and plans for the Silver Reef
Property including the Company’s planned expenditures and exploration activities.
Forward-looking information is not a guarantee of future performance and is based upon a number of
estimates and assumptions of management at the date the statements are made. Furthermore, such
forward-looking information involves a variety of known and unknown risks, uncertainties and other
factors which may cause the actual plans, intentions, activities, results, performance or achievements
of the Company to be materially different from any future plans, intentions, activities, results,
performance or achievements expressed or implied by such forward -looking information, including
without limitation, risks associated with mineral exploration, including the risk that actual results and
timing of exploration and development will be different from those expected by management . See
“Risk Factors” in the Company’s annual information form dated March 31, 2022 filed on SEDAR at
www.sedar.com for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such
information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any
revisions to forward -looking information con tained in this press release to reflect events or
circumstances after the date hereof.