PPX Announces Reinstatement of Trading on the TSX Venture Exchange, Corporate Update and Strategic Alternatives Review
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NEWS RELEASE TSX.V PPX; BVL PPX; SSE PPX
PPX Announces Reinstatement of Trading on the TSX Venture Exchange,
Corporate Update and Strategic Alternatives Review
Vancouver, British Columbia – February 10, 2022 – PPX Mining Corp. (the “Company” or “PPX”)
is pleased to announce that the TSX Venture Exchange (the “Exchange”) has approved the application for
reinstatement of trading of the Company’s common shares (the “Shares”). The Exchange suspended
trading in the Shares because of the dual cease trade order (the “CTO”) issued by the British Columbia
Securities Commission and the Ontario Securities Commission on February 3, 2021 for the delay in the
filing of the Company’s audited annual consolidated financial statements, management’s discussion and
analysis and associated officer certificates for the Company’s financial year ended September 30, 2020.
The CTO was revoked on February 8, 2022 (see the Company’s news release issued on February 9, 2022).
The Shares will reinstate trading on the Exchange at the opening of trading February 11, 2022.
In connection with the reinstatement of trading, PPX is pleased to provide a Corporate Update and Strategic
Alternatives Review. Immediate short and medium-term goals for PPX are focused on the following:
• Increase Mine Production: As reported in the Company’s recent audited Annual Financial
Statements for 2021, Mina Callanquitas is generating significant cashflow for the Company.
Increasing mine production, coupled with sourcing high-quality toll mill capacity, can provide
immediate relief to our balance sheet. The Company’s mining partner, Proyectos La Patagonia
S.A.C., has the human resources and mining equipment required to expand mine production;
therefore, sourcing additional toll milling capacity is the focus.
• Resume Exploration at Igor: For the past two years, the combined effects of the global pandemic
and limited deployable capital, have forced the Company to curtail exploration activities at Igor.
With increased cashflow from gold and silver production at Mina Callanquitas, PPX is undertaking
a comprehensive review of exploration objectives including underground drilling at Mina
Callanquitas, surface drilling between Mina Callanquitas and the Portachuelos target area, surface
and possibly underground exploration at Portachuelos. These targets will be prioritized, provisional
budgets evaluated, and permitting timelines established. Much has been learned geologically
during the years of mining operations at Callanquitas and the application of this knowledge to a
new exploration program has become an important objective for the Company.
Based on a directive from the PPX Board of Directors, the Company has been in discussions with external
advisors seeking input as the Board considers several value accretive Strategic Alternatives for the
Company. These Alternatives include, but are not limited to: 1) Potential business combinations with other
groups in the mining sector that would allow PPX to jumpstart its growth (i.e. merger and acquisition
opportunities), 2) Equity or other forms of investment in PPX that would allow the Company to grow
organically by completing its processing plant at Igor and, in parallel, expand mine production at Mina
Callanquitas, and 3) Restructuring of existing debt and financial obligations to provide balance sheet relief
to the benefit of all stakeholders. Any of the above Alternatives are actionable, separately or in parallel,
providing outcomes that are value accretive to the Company. The Company is also engaged in direct
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discussions with key shareholder groups in order to identify additional opportunities to advance the Igor
Project.
Brian J. Maher, President and CEO of PPX commented: “After the challenges of the past two years, the
Company is now positioned for a reset, with our management’s focus on successfully growing the
Company, organically from within, and assisted by the external catalysts that a new business plan can
provide”.
About PPX Mining Corp:
PPX Mining Corp. (TSX.V: PPX.V, SSE: PPX, BVL: PPX) is a Canadian-based mining company with
assets in northern Peru. Igor, the Company’s 100%-owned flagship gold and silver project, is located in
the prolific Northern Peru gold belt in eastern La Libertad Department. PPX is operating the Callanquitas
Mine (“Mina Callanquitas”) exploiting high grade, underground-minable oxidized gold and silver ore.
Based on the Company’s Pre-Feasibility Study (“PFS”), PPX expects the Callanquitas Mine to produce up
to 26,000 AuEq* ounces per year over a seven-year mine life at cash cost of less than US$610/AuEq*
ounce (the Igor PFS is available on the Company’s website and SEDAR). While PPX has not declared
commercial production at Mina Callanquitas, increasing metal prices and mine productivity, coupled with
superior toll milling contracts, have all contributed to the increasing revenue derived from operations at
Mina Callanquitas. It should be noted that the decision to commence mining operations at Mina
Callanquitas is based solely on the PFS referenced above, not a feasibility study. As such, t here is an
increased uncertainty as to the specific economic outcome of the project and a similar increase in the
technical risk of failure associated with a production decision based solely on the PFS.
Through Fiscal Q3 2021, Mina Callanquitas has produced over 133,000 tonnes of ore grading 9.40 gpt gold
and 79.1 gpt silver resulting in the production of 30,857 ounces of gold from the Measured and Indicated
Resource at Mina Callanquitas which is a portion of the project’s Mineral Reserves as defined in the Igor
PFS. The mine currently produces at a rate of approximately 140 tonnes/day with ore being processed at
nearby toll milling facilities.
*AuEq is calculated as follows: AuEq ounces = Au ounces + Ag ounces/75. Per PFS, inclusive of metallurgical recovery.
All scientific and technical information in this press release has been reviewed and approved by Quentin
Browne M.Sc., a Certified Professional Geologist and a member of the American Institute of Professional
Geologists, and is a Qualified Person as the term is defined in NI 43-101. Mr. Browne is an independent
consultant of PPX Mining Corp.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
PPX Mining Corp.
Brian J. Maher, President and Chief Executive Officer
Phone: 1-530-913-4728
Email: [email protected]
Website: www.ppxmining.com
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.
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Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking information and forward-looking statements (collectively, “forward-looking
statements”) as such terms are defined by applicable securities laws, including, but not limited to statements regarding the
resumption of trading on the Exchange; increasing mine production; sourcing high-quality toll mill capacity; resuming exploration
at Igor; permitting timelines; proposed production at the Callanquitas Mine; potential business combinations; equity or other forms
of investment in PPX; completion of the processing plant at Igor; and restructuring of existing debt and financial obligation s.
Forward-looking statements are statements that relate to future events. In this context, forward-looking statements often address
expected future business and financial performance and often contain words such as "anticipate," "believe," "plan," "estimate,"
"expect," and "intend,", statements that an action or event "may," "might," "could," "should," or "will" be taken or occur, or other
similar expressions. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, many of
which involve factors or circumstances that are beyond the Company’s control, and the Company’s actual results could differ
materially from those stated or implied in forward-looking statements due to many various factors. Such uncertainties and risks
include, among others, delays in obtaining or inability to obtain required regulatory approvals in connection with the resumption
of trading on the Exchange; risks associated with the mining industry (including operational risks in exploration development and
production; delays or changes in plans with respect to exploration or development projects or capital expenditures; industrial
accidents; failure of processing and mining equipment to perform as expected; the interpretation of drill results and the uncertainty
of estimates and projections in relation to production, costs and expenses; changes in project parameters as plans continue to be
refined; and the uncertainty surrounding the ability of PPX to obtain all permits, consents or authorizat ions required for its
operations and activities); the ability of the Company to fund the capital and operating expenses necessary to achieve the business
objectives of the Company, including the ability of the Company to fund the drilling campaign at the Igor concession; the impact
of the COVID-19 pandemic on the business and operations of the Company; and the state of financial markets.
Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company
cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur. The
timing of events and circumstances and actual results could differ materially from those projected in the forward -looking
statements. Accordingly, one should not place undue reliance on forward-looking statements. All forward-looking statements
contained in this press release are made as of today’s date, and the Company undertakes no obligation to update or publicly revise
any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.