PPX Provides Q4 2018 Results for Mina Callanquitas and the Closing of First Tranche of Private Placement of Units
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NEWS RELEASE TSX.V PPX; BVL PPX; SSE PPX
PPX Provides Q4 2018 Results for Mina Callanquitas and the Closing of First
Tranche of Private Placement of Units
Vancouver, British Columbia – February 12, 2019 – PPX Mining Corp. (the "Company" or “PPX”)
is pleased to announce that 9,050 tonnes of mineralized material grading 9.33 gpt gold were mined and
processed during calendar Q4 (October-December) 2018 at Mina Callanquitas. In addition, 747 metres of
lateral mine development and exploration were also completed during the quarter as the Company continues
to focus on the development of underground mine infrastructure. Highlights of mining results for calendar
Q4 2018 are given below:
• The Company’s mining partner Proyectos La Patagonia S.A.C. (“PLP”) provided the Company
with a detailed report on operations at Mina Callanquitas for calendar Q4 2018. PLP reports that
9,050 tonnes of gold mineralized rock were shipped to the Malin Plant of Silver Cascas S.A.C.
(“Silver Cascas”). The average gold grade of the mineralized material was 9.33 gpt gold. Gold
recoveries from processing the mineralized rock at the Silver Cascas processing plant ranged from
70% to 88%, consistent with gold recoveries observed previously. To date, PPX has mined over
50,524 tonnes of mineralized material from the Measured and Indicated Resource at Mina
Callanquitas. These resources are adjacent to the project’s Mineral Reserves as defined in the Igor
Pre-Feasibility Study (available on the Company’s website or SEDAR). PLP utilizes the proceeds
from the sale of the mineralized material to advance underground development at Mina
Callanquitas in anticipation of the completion of the Company’s own processing plant in mid-2019
and expansion of mining rate to 350 tonnes/day.
Brian J. Maher, President and CEO of PPX Mining Corp commented: “The mining rate at Mina
Callanquitas continues to increase as we expand production toward our goal of 350 tpd as outlined in Igor
Project Pre-Feasibility Study. The mined gold grade continues to exceed the grades indicated in our
resource and reserve model; we believe that our grade control and mining methods are minimizing dilution
and mine loss. Site work continues for the heap leach processing plant, we expect to begin concrete
foundation work during the month of February and begin assembly of the steel structure that will support
the crushing circuit. The Company is making good progress towards our goal of commissioning the
processing plant in mid-2019, achieving commercial production, and generating positive cash flow during
the balance of 2019.”
Closing First Tranche of Private Placement:
PPX is also pleased to announce that it has closed the first tranche of the non-brokered private placement
previously announced on December 6, 2018 for up to 53,333,334 units (each, a “Unit”) at a price of $0.075
per Unit for gross proceeds of up to $4,000,000. Pursuant to the closing of the first tranche of the private
placement, the Company issued 18,999,998 Units for aggregate gross proceeds of $1,424,999.85. Each Unit
consists of a common share of the Company and one half of a common share purchase warrant (each, a
"Warrant"). Each Warrant entitles the holder to purchase one common share of the Company at a price
of $0.10 per share on or before February 11, 2021.
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In consideration for introducing certain first tranche subscribers to the private placement, the Company is:
(i) paying a cash finders’ fee of $24,000 to one arm’s length finder, representing 8% of the total funds raised
from subscribers introduced to the Company by such finder; and (ii) issuing 965,333 common shares of the
Company to a separate arm’s length finder, with such shares representing 8% of the total number of Units
sold to subscribers introduced to the Company by such finder.
Securities issued to the placees under the private placement will be subject to a four-month hold expiring
on June 12, 2019, in accordance with applicable Canadian securities laws. The Company intends to use the
proceeds of the private placement for general working capital purposes.
Felix Alberto Navarro Grau Hurtado, a director of the Company, purchased 2,000,000 Units under the
private placement. His participation is considered to be a "related party transaction" as defined under
Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities
to be distributed in the private placement nor the consideration to be received for those securities, in so far
as the private placement involves Felix Alberto Navarro Grau Hurtado, exceeds 25% of the Company’s
market capitalization.
The Company has received conditional acceptance from the TSX Venture Exchange for the private
placement, and as of January 25, 2019 such conditional acceptance has been extended for an additional 30
days ending February 24, 2019 in order for the Company to complete future tranches of the private
placement. The Company expects to close future tranches of the private placement in due course.
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 developing the Callanquitas
Mine and heap leach facility to exploit high grade, underground-minable 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). Simultaneously, PPX is accelerating its
exploration program at Igor in order to fully evaluate the resource potential of the entire Igor project area.
The Callanquitas structure is open along strike and at depth, parallel structures are unexplored. New
discoveries at Portachuelos, coupled with the Domo and Tesoros exploration targets, emphasize that the
Igor Project is evolving into a district-scale project with multiple deposits and mineralized zones.
*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 J.
Browne, P.Geo., Independent Consulting Geologist to PPX Mining Corp., who is a qualified person under
the definitions established by National Instrument 43-101.
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]
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Website: www.ppxmining.com
Cautionary Statement:
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. Certain disclosure in this release, June constitute
"forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and
Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors
and assumptions that the Company believes are reasonable. However, the forward-looking statements in this release are subject to
numerous risks, uncertainties and other factors that June cause future results to differ materially from those expressed or implied
in such forward-looking statements. Such uncertainties and risks are detailed from time to time in the Company's filings with the
appropriate securities commissions, and June include, among others, market conditions, and delays in obtaining or failure to obtain
required regulatory approvals or financing. There can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue
reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to,
update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as
required by law.