Option of Silver Bell - St. Lawrence Mineral Property
PELOTON MINERALS CORPORATION
NEWS RELEASE
March 18, 2019 CSE SYMBOL: PMC
OTCQB SYMBOL: PMCFF
Peloton and Frederick Private Equity Corporation
Sign an Exploration Agreement with Joint Venture Option
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) through its wholly owned subsidiary
SBSL Subsidiary Corporation and Frederick Private Equity Corporation (“Frederick PEC”)
have signed an Exploration Agreement with a joint Venture Option (the “Agreement”) on
the Company’s Silver Bell – St. Lawrence Gold Project (the “Project” or “SBSL”) including
an area of interest esta blished around the Project which is located in the Virginia City
Mining District, Montana . Under the Agreement, Frederick PEC may earn up to a 75%
interest in the Project by spending a total of US$2,000,000 in exploration expenditures
within six years and make annual option payments.
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 Min e 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 production 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.
Peloton President Edward (Ted) Ellwood comments: “It is well known that our company
focus is on Nevada but at the same time, in my view, we have had this significant Montana
asset in our portfolio that has not received due attention. I am really pleased that we were
able to bring in a partner to advance the Montana SBSL project while still enabling Peloton
to keep its focus on Nevada.”
Frederick PEC may first earn a 51% interest in the Project by making annual US$10,000
option payments and spending US$ 1,000,000 in exploration expenditures within four
years with a minimum of $200,000 in expenditure during the first two years. Frederick
PEC may earn a further 24% interest in the Project by then making annual US$25,000
option payments and spending an additional US$ 1,000,000 in exploration expenditures
over a two year period following the establishment of the first 51% interest , for a total of
US$2,000,000 to earn a 75% interest. After Frederick PEC has earned either a 51% or a
75% interest, as the case may be, a mining venture or mining com pany may be formed
with respect to the Project, and Frederick PEC and Peloton will contribute their respective
share of further exploration and development expenditures. In the event that either party’s
interest is diluted to ten percent (10.0%) or less, it shall relinquish its interest to the other
party, in return for a royalty agreement that conveys to the diluting party a royalty of one
percent (1.0%) of net smelter returns on all minerals thereafter produced and removed
from the Project. The non-diluting party may, at any time, buy-down that royalty by one-
half percent (0.05%), so that the total royalty is one -half percent (0.05%) of net smelter
returns, by paying US$250,000 to the royalty holder. The Project is subject to an earlier
outstanding 2% NSR, the majority of which can be bought down to one percent (1%), and
a buy down option on the remaining claims is being sought.
Frederick PEC is arms-length to Peloton but John O’Donnell, the Chairman of Peloton, is
also a director of Frederick PEC. The terms of the agreement are based on terms similar
to what Peloton has asked of other arms-length parties that have expressed interest in
the past.
Other developments: Peloton has engaged German Mining Networks (“GMN”) to
provide European investor relations and financing advisory services. GMN will be paid
Cdn$3,800 per month on a month to month basis and no stock options are being granted
under this engagement.
John C hilds, 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
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. as OTCQB Symbol: PMCFF. There are 78,604,800 common shares issued and
outstanding in the capital of the Company.
About Peloton: In addition to the Montana project described in this release, Peloton
holds three gold exploration projects located in Elko County, Nevada, one of which, is
under option to Kinross Gold USA Inc.
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" (w ithin the meaning of the U.S. Private Securities Litigation Reform Act of 1995).
Such statements or information 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 regar ding, 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 Com pany’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 o f 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.