Power Group Signs LOI to Acquire Newfoundland Platinum and Palladium Project
POWER GROUP SIGNS LOI TO ACQUIRE NEWFOUNDLAND
PLATINUM AND PALLADIUM PROJECT
NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OF AMERICA
October 8, 2020 – Toronto, Ontario - Power Group Projects Corp. (TSXV: PGP) (“Power Group” or
the “Company”) is pleased to announce that it has entered into a binding letter of intent (the “LOI”) with
Pallplat Metals Inc. (“ Pallplat” or the “ Vendors”) for the acquisition of the Muddy Gullies project in
Newfoundland, Canada (the “ Muddy Gullies Property” or the “ Property”). In consideration for the
purchase of the Property, on signing of a definitive agreement, the Company will issue the shareholders of
Pallplat 12,900,000 common shares in the capital of the Company.
The Muddy Gullies Property is prospective for the exploration of platinum and palladium minerals and is
comprised of 83 mineral claims. The Property is located 28 kilometers northeast of Gander, Newfoundland.
The completion of the transaction contemplated by the LOI remains subject to the Company and Pallpla t
entering into a definitive agreement and the approval of all regulatory and other approvals, including the
approval of the TSX Venture Exchange.
About the Muddy Gullies Property
The Muddy Gull ies Property is located 28 kilometers northeast of the town of Gander, NL . Route 330
affords easy access to the property as does Muddy Gullies access road which runs east from route 330.
The Property comprises 83 claim units covering ~20.73 square kilometres. The Property is host to several
historical platinum, palladium, copper and gold showings, as indicated by the Mineral Occurrence Database
System, Department of Natural Resources, Newfoundland & Labrador . The Property is underlain by a
portion of the Gander River U ltramafic Belt (GRUB LINE) which consists of pyroxenite and lessor
serpentinite, magnesite, amphibolite, hornblendite, and gabbro.
The mafic and ultramafic rocks of the GRUB LINE are considered to be an ophiolitic suite of volcanic and
plutonic rocks which have tectonically emplaced over the Gander Groups.
Local and Regional Geology
The Muddy Gullies Property straddles the tectonic boundary between the Dunnage Zone to the northwest
and the Gander Zone to the southeast. The Davidsville Group sediment s represent rocks of the Dunnage
Zone on the Muddy Gullies Property and consist of pebble conglomerate, sandstone, shale and siltstone.
Areas to the west of the Gander River are predominantly underlain by rocks of the Davidsville Group. The
Gander Zone is represented by rocks of the Gander River Ultramafic Belt (GRUB), which includes tonalite,
intermediate to mafic volcanics, gabbro, serpentinite, pyroxinite and talc -magnesite altered ultramafics.
Alternating sequences of the two contrasting rock groups outcrop across the property on the east side of
Gander River and is interpreted to be shallow westward dipping thrusted slices.
J.P. Bouzane Associates Ltd. explored for gold, platinum , and palladium in the immediate area of the
Property between 2000 and 2002. A third -year assessment report indicates combined values for platinum
2
and palladium of up to 2400 ppb (J.P. Bouzane Associates Lt. 2000,2001,2002). Another company,
0840559 B.C LT D., in 2013 completed an airborne mag-em survey, mapping, prospecting, and limited
drilling. The Vendors re-sampled areas sampled by Bouzane and confirmed platinum-group element
(“PGE”) mineralization and also outlined additional areas of anomalous PGE mineralization on the
Property.
Samples by the Vendors were taken in the area of claim number 024113M. PGE mineralization seems to
be controlled by a non -magnetic course-grained pyroxenite unit. Significant assays ranged from 198 ppb
combined Pt+Pd+Au to 1245 ppb combined Pt+Pd+Au.
Qualified Person
Kelly Malcolm, P.Geo. , an Independent Qualified Person (" QP") as such term is defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the geological
information reported in this news release. The Qualified Person has not completed sufficient work to verify
the historic information on the Property, particularly with regards to historical sampling and regional
government-mapped geology. However, the Qualified Person assumes that sampling and analytical results
were completed to industry standard practices. The information provides an indication of the exploration
potential of the Property but may not be representative of expected results.
For further information, please contact:
Aleem Nathwani
Chief Executive Officer and Chairman
Tel: (604) 290-7073
Email: [email protected]
Cautionary Statement on Forward-Looking Information
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.
This news release contains certain “forward -looking information” within the meaning of applicable securities law s. Forward
looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”,
“estimate”, “may”, “will”, “would”, “potential”, “proposed” an d other similar words, or statements that certain events or
conditions “may” or “will” occur. These statements are only predictions. Forward -looking information is based on the opinions
and estimates of management at the date the information is provided, and is 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 information. For
a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s
Management’s Discussion and Analysis. The Company undertakes no obligation to update forward -looking information if
circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place
undue reliance on forward-looking information.