African Metals and SBSL Project
PELOTON MINERALS CORPORATION
NEWS RELEASE
May 1, 2019 CSE SYMBOL: PMC
OTCQB SYMBOL: PMCFF
Frederick Private Equity Corporation
Signs Agreement with African Metals Corporation
to Fund & Accelerate Exploration on Peloton’s
Silver Bell - St. Lawrence Gold Project, Montana
London, Ontario – Peloton Minerals Corporation (“Peloton” or the “Company”)
(CSE Symbol: PMC) (OTCQB Symbol: PMCFF) reports that Frederick Private Equity
Corporation (“Frederick PEC”) has signed an agreement (the “Assignment Agreement”)
with African Metals Corporation (“AMC”) to fund and accelerate exploration on Peloton’s
Silver Bell – St. Lawrence Gold Project in Montana (“SBSL” or the “Project”). (See AMC’s
press release filed on SEDAR at www.sedar.com on April 26, 2019).
Under the original Exploration Agreement with Joint Venture Option (the “Exploration
Agreement”) between Frederick PEC and Peloton, Frederick PEC can earn up to a 75%
interest by s pending US$2,000,000 in exploration on the Project over 6 years, with a
minimum of US$200,000 expenditure in the first two years, and by making certain annual
option payments as outlined in the Peloton news release dated March 28, 2019 (available
on SEDAR at www.sedar.com or on www.pelotonminerals.com).
AMC has agreed to spend the first US$200,000 in exploration during the first year
and has advised Peloton that a drilling program is being planned for the summer
of 2019.
SBSL comprises a 390 acre claim package locat ed about 4 miles southwest of Virginia
City in Madison County, Montana, and about 50 miles southeast of Butte, Montana.
SBSL hosts two past producing gold-silver mines, the Silver Bell Mine on the west and
the St. Lawrence Mine on the east . Both mines operated in the early 1900s and the
St. Lawrence was reactivated and operated in the early 1980s. Historical production
records are incomplete but available information suggests that historical production at
the St. Lawrence was approximately 0.22 ounces per ton (“opt”) gold and 3.8 opt silver.
Smelter receipts for small shipments from the St. Lawrence indicate that some ore with
much higher grades was shipped. For example, a smelter receipt from October 30,
1964 states that 8.027 tons were received grading 0.76 opt gold and 20.0 opt silver.
Historical produc tion at the Silver Bell averaged approximately 0.2 opt gold and 15.1
opt silver.
The shafts for each of the former mines are located 3,600 feet apart and the exploration
hypothesis is that the two mines shared mineralized systems that may in part be
contiguous. Surface mapping and geophysical surveying by the Company support this
initial hypothesis and may indicate extension of the vein system farther east along strike
from the St. Lawrence mine.
John O’Donnell is an officer and/or director of Peloton, Frederick PEC, and AMC and, as
such, recused himself from the approval process of the transactions.
Other matters: Peloton may conduct a private placement offering to fund exploration this
summer on the Company’s Golden Trail and Texas Canyon Project s in Elko County,
Nevada and working capital. The private placement will be conducted in reliance upon
certain prospectus exemptions, including the exemption allowing issuers to raise capital
by distributing securities to existing shareholders (the “Existing Shareholder Exemption”)
contained in OSC Rule 45-501 (2.9) and the various corresponding blanket orders and
rules of participating jurisdictions (with the exception of Newfoundland and Labrador) as
well as other available prospectus exemptions, including sales to accredited investors
and close personal friends and business associates of directors and officers of the
Company. The Company has set May 1 , 201 9 as the record date for the purpose
of determining existing shareholders entitled to purchase shares pursuant to the Existing
Shareholder Exemption. Subscriptions are accepted in whole or in part at the discretion
of the Company on a first come, first served basis.
John Childs , PhD, is the qualified person responsible for approving the technical
information contained within this release.
For further information please contact:
Edward (Ted) Ellwood, MBA
President & CEO
1-519-964-2836
About Peloton: Peloton holds three gold exploration projects located in Elko County,
Nevada, one of which, is under option to Kinross Gold USA Inc. Peloton also holds the
SBSL Project in Montana (the subject of this release), which is under option to Frederick
PEC and AMC.
Peloton Minerals Corporation is a reporting issuer in good standing in the Province of
Ontario whose common shares are listed on the CSE (Symbol: PMC) and are quoted in
the U.S. on the OTCQB (Symbol: PMCFF). There are 78,604,800 common shares issued
and outstanding in the capital of the Company. Visit www.pelotonminerals.com.
CSE has not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws)
and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995).
Such statements or inform ation are identified with words such as "anticipate", "believe", "expect", "plan", "intend",
"potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or
statements regarding an outlook.
Such statements include, among others, those concerning the Company’s plans for exploration activity and to conduct
future exploration programs. Such forward -looking information or statements are based on a number of risks,
uncertainties and assumptions which may cause actual results or other expectations to differ materially from those
anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things,
management's expectations regarding its ability to initiate and complete future exploration work as expected. Actual
results could differ materially due to a number of factors, including, without limitation, operational risks in the completion
of the Company’s future exploration work, technical, safety or regulatory issues.
Although the Company believes that the expectations reflected in the forward -looking information or statements are
reasonable, prospective investors in the Company’s securities should not place undue reliance on forward -looking
statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-
looking information and statements contained in this news release are as of the date of this news release and the
Company assumes no obligation to update or revise this forward-looking information and statements except as required
by law.