Pan Global Signs Deal to Purchase 100% of Spanish Exploration Licence
1199 West Hastings Street, Suite 700, Vancouver, BC V6E 3T5
Tel: 604-689-9930 Fax: 604-689-9940
May 23, 2017
Shares Issued and Outstanding: 60,085,387
TSXV: PGZ
PAN GLOBAL SIGNS DEAL TO PURCHASE 100% OF SPANISH
EXPLORATION LICENCE
VANCOUVER, BRITISH COLUMBIA – (May 23 , 2017 ) – Pan Global Resources
Inc. (“Pan Gl obal” or the "Company") (TSX Venture Exchange: PGZ) is pleased to
announce the Company has entered into a Letter of Intent (L OI) with Evalam 2003
S.L. (the “Vendor”), a private Spanish company, to purchase 100% of the Vendor’s
gold / copper / zinc mineral prospect in Spain , subject to a royalty as described
below. The Vendor has applied for an exploration license in the provinces of Seville
and Huelva, Kingdom of Spain, to conduct evaluation and mineral exploration on a
mineral prospect known as the “Escac ena Property” . The proposed transaction is
subject to a number of conditions, including TSXV approval.
The Escacena Property
The Escacena Property covers 68 mining quadriculars or approximately 2 ,060
hectares in the Iberian Pyrite Belt, on the Western extension of the same trend of
volcanic rocks that host large massive sulphide ore deposits at the Aznalcollar, Los
Frailes and Las Cruces Mines . It is within 5km of Aznalcollar mine. The project
includes an untested gravity anomaly with adjacent copper a nd gold mineralization.
Historical channel sampling along the full length of a mine tunnel along a fault up -dip
from the gravity anomaly returned 30m at an average grade of 2.06 grams per tonne
gold. From information provided by the Vendor, w ide-spaced dr illing by Exxon on
separate gravity target in the south of the property shows broad intervals of stock
work copper minerali zation and massive sulphide minerali zation under Tertiary
sedimentary cover over approximately 1.3 kilometres strike, and is open in several
directions. Better intervals include, 4.68 metres at 2.94% copper, 3 metres at 3.24%
copper and 2.82 metres at 2.2% copper. The area has not had any modern
exploration for 30 years.
Terms of the Acquisition
The terms of the LOI provide for payment of CAD$350,000 to the Vendor and funding
by the Company of $1,000,000 in exploration expenditures under the following
conditions:
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a) Cash Payments
Subject to TSXV approval, Pan Global will make cash option payments to the
Vendor as follows:
Date Amount Cumulative
Issuance Date* (defined below) $ 30,000 $ 30,000
12 months after Issuance Date $ 50,000 $ 80,000
24 months after Issuance Date $100,000 $ 180,000
36 months after Issuance Date $170,000 $ 350,000
Total $ 350,000
If Pan Global has not made the cash payments in the time and manner provided
above, the Vendor may give Pan Global written of its intention to terminate the
Option not less than 30 days from the date of the notice. During the notice period
Pan Global may cure the default by making the cash payment, in which case the
notice of termination shall be withdrawn.
b) Exploration Expenditures
Subject to TSXV approval, Pan Global will incur the following exploration
expenditures on or in connection with the Escacena Property:
Date Amount Cumulative
12 months after Issuance Date $ 200,000 $ 200,000
24 months after Issuance Date $ 300,000 $ 500,000
36 months after Issuance Date $ 500,000 $1,000,000
Total $1,000,000 .
Pan Global may at any time pay to the Vendor money in lieu of incurring Exploration
Expenditures in which event Pan Global shall be deemed to have incurred additional
Exploration Expenditures in the same amount as the amount of any such payment.
* ”Issuance Date” shall mean the later to occur of the following events:
1. Receipt of final acceptance of the transaction by the TSX Venture Exchange
Inc.
2. Issuance by the Sección de Minas de Seville y Huelva of the Kingdom of
Spain, as applicable, of an exploration license to and conduct mineral
exploration work upon the Escacena Property.
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c) NSR Royalty
Upon commencement of commercial production, Pan Global shall pay to the Vendor
a royalty in an amount equal to a percentage of net smelter returns. The amount will
be calculated quarterly based on production from the Escacena Property for the
most recently completed calendar quarter, and will be 0.5% on the first 12,500
tonnes of copper equivalent and 0.75% on any amount in excess of 12,500 tonnes of
copper equivalent. The royalty is subje ct to an aggregate lifetime maximum cap of
$5,000,000.
Qualified Person
Robert Baxter (FAusIMM), a Director of Pan Global Resources and a qualified
person as defined by National Instrument 43 -101, has reviewed the scientific and
technical information tha t forms the basis for this news release. Mr. Baxter is not
independent of the Company.
About Pan Global Resources
Pan Global Resources Inc. is actively engaged in base and precious metal
exploration in Spain, and is pursuing opportunities from explorati on through to mine
development.
On Behalf of the Board of Directors
www.panglobalresources.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Tim Moody, President and CEO
E-mail: [email protected]
INVESTOR RELATIONS
Michelle Borromeo
E-mail: [email protected]
Phone: 604-715-6845
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SER VICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.