Playfair Goes for Copper in Norway
NEWS RELEASE
230-470 Granville St. Tel: 604 687-7178 PLY: TSX-V
Vancouver, B.C. Fax: 604 687-7179
Canada V6C 1V5 Toll Free: 888-244-6644 March 1, 2019
NR-2019-01
Playfair Goes for Copper in Norway
Playfair Mining Ltd. (PLY -TSX.V) is pleased to announce that it has entered into an Option and
Exploration Agreement with EMX Royalty Corporation (EMX-TSX.V) to acquire a 100% interest in EMX’s
contiguous Rostvangen and Vakkerlien properties in South Central Norway. Together the properties
cover almost 300 square kilometers in a historic mining area about 100km south of Trondheim by road.
The Rostv angen-Kvikne-Vakkerlien Project (RKV Project) covers 2 past -producing Besshi-type
Volcanogenic Massive Sulphide (VMS) copper mines (Rostvangen and Kvikne), a nickel -copper deposit
(Vakkerlien) and over 20 additional known mineral occurrences.
At Rostvangen, according to the Norwegian Geological Survey ( “NGU”), 388,000 tons were mined from
1908 to 1920 and 100,000 tons were left in reserves *. Bedrock samples taken by NGU in 1998 are
reported to assay up to 6.96% copper, 0.59% zinc and 0.08% cobalt.
At Kvik ne, according to the Norwegian Geological Survey (NGU) about 250,000 tons were produced
between 1629 and 1789. Dump samples taken by NGU in 1998 are reported to assay up to 3.14%
copper, 6.35% zinc and 0.06% cobalt.
At Vakkerlien, a non 43 -101 compliant resource* of 400,000 tons of 1.00% nickel and 0.4% copper was
calculated by Falconbridge Nickel Mines in 1977 based on 109 core holes drilled between 1975 and
1977.
Playfair can acquire a 100% interest in the RKV Project through the issuance of Playfair common shares
to EMX and conducting exploration work during a one -year option period as detailed below (all dollar
amounts in CAD).
On TSX approval of the Agreement, Playfair will issue to EMX 3 million shares of Playfair stock.
As a condition t o the exercise of the option Playfair must incur $250,000 in exploration
expenditures within one year.
Upon exercise of the option , Playfair will issue an additional 3 million shares of Playfair stock,
EMX will transfer 100% of the property to Playfair and EMX will receive a 3% net smelter royalty
(“NSR”) on the property. Within 5 years, Playfair will have the option to buy back up to 1% of
the NSR for $3 million, leaving EMX with a 2% NSR.
EMX will receive annual advance royalty (“AAR”) payments of $30,000 commencing on the
second anniversary of the option exercise, with the AAR payments increasing by $5,000 per
year until reaching $80,000 per year.
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Following exercise of the option Playfair undertakes to complete a minimum of 1,000 meters of
drilling in the following year and a cumulative 2,000 meters within 2 years following the option
exercise.
In addition, Playfair undertakes to use commercially reasonable efforts to raise an additional
$2.75 million for advancement of the RKV Project.
No later than 2 years after the signing Playfair will issue sufficient Playfair shares to EMX to
bring EMX’s ownership of Playfair shares to 9.9% of the issued share capital of Playfair. Playfair
will maintain EMX’s interest in Playfair, at no additional cost to EMX until Playfair has raised a
cumulative $3 million in equity to fund exploration and development on the properties or until
5 years after Exchange approval, whichever occurs first. Thereafter, EM X will have the right to
participate pro-rata in future financings at its own cost to maintain its interest in Playfair.
No later than five years after closing, Playfair will make a Milestone Payment to EMX by issuing
sufficient Playfair shares to bring EMX’s ownership of Playfair shares to 9.9% of the issued share
capital of Playfair, provided that the value of the shares so issued shall not exceed $250,000.
All terms of the Agreement are subject to TSX Venture Exchange Approval.
* Estimates of Vakkerlien resources and Rostvangen reserves are historical in nature, pre -date and are
non-compliant with NI 43 -101. Playfair is not treating the historical estimates as current mineral
resources or reserves. Playfair has not undertaken any independent investigatio n of the resource
estimates nor has it independently analyzed the results of the previous exploration work in order to verify
the resources, and therefore the historical estimates should not be relied upon. However, Playfair
believes that these historical estimates provide a conceptual indication of the potential of the
occurrences and are relevant to ongoing exploration.
The technical contents of this release were approved by Greg Davison, PGeo, a qualified person as
defined by National Instrument 43-101.
ON BEHALF OF THE BOARD
"D. Neil Briggs"
D. Neil Briggs, Director
Forward-Looking Statements: This Playfair Mining Ltd News Release may contain certain "forward -looking"
statements and information relating to Playfair which are based on the beliefs of Playfair management, as well as
assumptions made by and information currently available to Playfair management. Such statements reflect the
current risks, uncertainties and assumptions related to certain factors including, without limitations, exploration
and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices,
political and economic factors, competitive factors, general economic conditions, relationships with vendors and
strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices,
and one-time events. Should any one or more of these risks or uncertainties materialize or change, or should any
underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from
those described herein.
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.