2020-09-30 Prismo Press Release
PRISMO METALS COMPLETES INITIAL PUBLIC OFFERING
Vancouver, British Columbia, September 30, 2020 : Prismo Metals Inc. (the " Company" or
"Prismo") (CSE: PRIZ) is pleased to announce that on September 30, 2020, it completed its initial
public offering (the " IPO") of 4,600,000 common shares (each a " Share"), at a price of $0.1 25
per Share (the “IPO Price”) for gross proceeds of $ 575,000, which includes the exercise of the
over-allotment option of the Agent (as defined herein) for an additional 600,000 Shares. The net
proceeds from the IPO will be used for working capital and to carry out exploration of the
Company's Palos Verdes Property located in the southern part of the State of Sinaloa in
northwestern Mexico, approximately 65 kilometers NE of Mazatlán, Sinaloa, in the Municipality
of Concordia.
Haywood Securities Inc. acted as agent (the " Agent") for the IPO. The Agent received a cash
commission equal to 7.5% of the proceeds of the IPO and a corporate finance fee of $ 25,000, of
which $20,000 was paid in cash and $5,000 in Shares at the IPO Price. Additionally, the Company
granted the Agent compensation options entitling the holder to purchase in aggregate 3 45,000
Shares at a price of $0.125 per Share, exercisable on or before September 30, 2022.
The Shares were approved for listing on the Canadian Securities Exchange on September 28, 2020
and are expected to begin trading on October 1st, 2020 under the symbol "PRIZ".
Prismo has also today granted stock options to purchase an aggregate 1,350,000 common shares,
pursuant to the terms of the Company’s stock option plan to directors, officers and consultants of
the Company. These options are exercisable at $0.125 per Share for a term of five years from the
date of issue. Furthermore, following the closing of the Offering, the Company will issue to a
consultant, subject to regulatory approval, 300,000 common shares at a price of $0.125 per share
pursuant to a shares for debt arrangement in the amount of $37,500. The shares issued under such
shares for debt arrangement are subject to a four month hold period expiring on January 31, 2021.
About Prismo
Prismo is engaged in the business of mineral exploration and the acquisition of mineral property
assets in Mexico. Its objective is to locate and develop economic precious and base metal
properties of merit. Further to this objective, the Company entered into an option agreement with
Prospeccion Y Desarrollo Minero Del Norte, S.A. de C.V. (“ProDeMin”), effective May 7, 2019,
pursuant to which it was granted the option to acquire a 75% interest in the Palos Verdes Property,
which constitutes the material property of the Company. Prismo’s Palos Verdes Project lies within
the historic Panuco-Copala silver-gold district in Sinaloa, Mexico where Vizsla Resources Corp.
(TSXV: VZLA) have reported considerable success recently.
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The Panuco-Copala district is characterized by a swarm of north to northwesterly oriented veins
that stretch laterally for 15 km along a northeast-southwest trend. Northeasterly-trending veins that
link and/or cross the northwesterly veins are locally well developed within the district. The eastern
part of the district is topographically much higher than the western zone where veins are
prominently exposed. Vein outcrops are subtle in the eastern zone, suggesting they are exposed at
a much higher level and have not lost their uppermost high-grade zones to erosion.
The Palos Verdes concession (claim) covers 700 meters of strike length of the Palos Verdes vein,
a member of the northeasterly trending vein family located in the eastern part of the district outside
of the area of modern exploration. Geol ogic mapping indicates that a northwesterly striking
structure intersects the Palos Verdes vein in the center of the concession. Drilling conducted in
2018 on the Palos Verdes Vein by ProDeMin was relatively shallow (< 100M) and cut a well
mineralized multistage vein 2 to 7 m wide with bonanza grade precious metal values and
subordinate base metals 30 to 50 meters underneath largely barren vein outcrops. The best intercept
was 8.42 g/t Au and 2,336 g/t Ag, over a down hole length of 1.15 m (0.8m true width). The tables
below show the drill hole data and intercepts. Mineralization is open along strike and at depth.
Dill hole intercepts from Palos Verdes Property
Hole From To (m) Width Est. True Au Ag Cu Pb Zn
(m) (m) Width (m)* (g/t) (g/t) (%) (%) (%)
PV-01 23.90 28.8 4.90 4.2 0.89 31 0.21 0.30 2.63
PV-02 40.35 48.7 8.35 5.5 1.69 474 0.54 1.09 3.84
incl. 45.25 48.7 3.45 2.3 3.75 1098 0.67 1.99 3.00
incl. 46.55 47.7 1.15 0.8 8.42 2336 0.265 1.72 2.46
PV-03 31.30 40.65 9.35 7.0 1.45 15 0.05 0.11 1.04
incl. 39.55 40.65 1.10 0.8 12.15 50 0.26 0.53 5.01
PV-04 55.45 59.00 3.55 3.0 0.12 37 0.31 0.12 0.74
PV-05 54.25 57.40 3.15 2.0 0.25 23 0.06 0.32 0.62
*True width estimated based on the drill hole azimuth and inclination and vein dip.
Drill hole data for ProDeMin drill program, Palos Verdes Property
The President and CEO of Prismo is Dr. Craig Gibson who has been active in the minerals industry
for more than thirty years with almost twenty of them working in Mexico. He received his B.S.
(1984) in Earth Sciences from the University of Arizona and M.S. (1987) and Ph.D. (1992) in
Economic Geology and Geochemistry from the Mackay School of Mines, University of Nevada,
Reno. Dr. Gibson has been involved in several major precious metal deposit discoveries in Mexico
with public and private companies. He co -founded ProDeMin based in Guadalajara, Mexico, in
2009, a consulting firm providing a broad spectrum of exploration related services to the mining
Drill TD (m)
Hole Start Finish E N Elev Azimuth Inclination
PV-18-01 5/8/2018 5/11/2018 413,759 2,593,160 1,222 318 -50° 80.00
PV-18-02 5/11/2018 5/13/2018 413,759 2,593,160 1,222 318 -75° 120.10
PV-18-03 5/13/2018 5/15/2018 413,759 2,593,160 1,222 280 -45° 63.00
PV-18-04 5/16/2018 5/18/2018 413,759 2,593,160 1,222 270 -65° 100.00
PV-18-05 5/19/2018 5/21/2018 413,598 2,593,042 1,257 335 -60° 94.00
Date Coordinates UTM WGS84 Orientation
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industry. Dr. Gibson is also a Director of Garibaldi Resources Corp. (TSXV: GGI), a Vancouver
based junior exploration company . He is a Certified Professional Geologis t of the American
Association of Professional Geologists and is a Qualified Person under NI 43-101.
The CFO of Prismo is Salvador Miranda whose career working with public companies in
administrative and financial roles has spanned over twenty years. He is currently CFO of Pacific
Ridge Exploration Ltd. and of GFM Resources Limited, and in the past, he served as CFO for
Newstrike Capital Inc., EnW ave Corporation and Exmin Resources Inc, and has provided
equivalent services to other junior public companies. Salvador is also past President and Treasurer
of the BC Chapter of the Canadian Council for the Americas and past President of the Mexican
Business Association of Canada. Salvador holds a master’s degree in Project Management from
the Massachusetts Institute of Technology (1982) and has taken numerous courses related to public
company accounting issues.
The principal shareholders of Prismo are Pro DeMin which owns 2, 500,000 common shares and
Minera Cascabel S.A. de C.V., (“Cascabel”) a private Mexican exploration company which owns
2,000,000 common shares and founded 32 years ago by Dr. Peter K.M. Megaw, Ing. Porfirio
Padilla Lara and two other asso ciates. Cascabel has generated exploration projects and provided
business and technical support to a broad range of international companies operating in Mexico
ever since. Dr. Megaw, Ph.D., C.P.G., received his doctorate from the University of Arizona and
more than 35 years of experience exploring for silver and gold in Mexico. He is a Certified
Professional Geologist by the American Institute of Professional Geologists and an Arizona
Registered [Professional Geologist. Dr. Megaw discovered MAG Silver's Juanicipio silver deposit,
MAG Silver's Cinco de Mayo project and new ore bodies at Excellon Resources' Platosa Mine.
Dr. Megaw is the author of numerous scientific publications on ore deposits and is a frequent
speaker at academic and international explorati on conferences. He was also awarded the 2017
Thayer Lindsley Award for the 2003 discovery of the Juanicipio silver deposit in the Fresnillo
District, ultimately leading to a further 600 million ounces being identified in the immediate area.
For more information, please refer to the Company's prospectus dated September 8, 2020 available
on SEDAR (www.sedar.com).
Qualified Person
Dr. Craig Gibson, Ph.D., the President and Chief Executive Officer of the Company, a Qualified
Person under NI 43 - 101 - Standards of Disclosure for Mineral Projects , has prepared and
approved the technical content of this release.
On Behalf of the Board of Directors
Peter Craig Gibson
Chief Executive Officer, President and Director
For further information, please contact:
Jason Frame
Investor Relations
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Cautionary Statement Regarding Forward-Looking Information
This news release includes certain forward-looking statements and forward -looking information
(collectively, " forward-looking statements ") within the meaning of applicable Canadian
securities legislation. All statements, other than statements of historical fact, included herein
including, without limitation, statements regarding future capital expenditures, anticipated content,
commencement, and cost of exploration programs in respect of the Company's projects and
mineral properties, anticipated exploration program results from exploration a ctivities, resources
and/or reserves on the Company's projects and mineral properties, and the anticipated business
plans and timing of future activities of the Company, are forward -looking statements. Although
the Company believes that such statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Often, but not always, forward looking information can be
identified by words such as "will", "pro forma", "plans", "expects", "may", "should", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations
of such words including negative variations thereof, and phrases that refer to certain actions, events
or results that may, could, would, might or will occur or be take n or achieved. Forward -looking
statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to differ materially from any future
results, performance or achieveme nts expressed or implied by the forward -looking statements.
Such risks and other factors include, among others, statements as to the anticipated business plans
and timing of future activities of the Company, including the Company's option to acquire a 75%
interest in and to the Palos Verdes Property, the proposed expenditures for exploration work
thereon, the ability of the Company to obtain sufficient financing to fund its business activities and
plans, delays in obtaining governmental and regulatory appro vals (including of the Canadian
Securities Exchange), permits or financing, changes in laws, regulations and policies affecting
mining operations, the Company's limited operating history, currency fluctuations, title disputes
or claims, environmental issues and liabilities, as well as those factors discussed under the heading
"Risk Factors" in the Company's prospectus dated September 8, 2020 and other filings of the
Company with the Canadian Securities Authorities, copies of which can be found under the
Company's profile on the SEDAR website at www.sedar.com.
Readers are cautioned not to place undue reliance on forward -looking statements. The Company
undertakes no obligation to update any of the forward -looking statements in this presentation or
incorporated by reference herein, except as otherwise required by law.