Pelangio Enters Option Agreement to Acquire the Hailstone GOLD Property IN the LA Ronge Area Saskatchewan
Pelangio Exploration Inc.
Pelangio Exploration Inc. News Release – July 15, 2019 1
82 Richmond Street East
Toronto, ON M5C 1P1
Tel: 905-336-3828
Fax: 905-336-3899
NEWS RELEASE
PELANGIO ENTERS OPTION AGREEMENT TO ACQUIRE THE HAILSTONE GOLD PROPERTY
IN THE LA RONGE AREA SASKATCHEWAN
TORONTO, Ontario (July 15, 2019) – Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) (“Pelangio”
or the “Company”) is pleased to announce that it has entered into a binding Letter of Intent (“LOI”) to
acquire a 90% proportionate legal and beneficial interest in seven mineral claims located in the La Ronge
area, Northern Mining District, Saskatchewan (the “Hailstone Property”) from First Geolas Consulting
(“Geolas” or the “Vendors”).
Highlights of the Hailstone Property:
• Hailstone Property is comprised of seven mineral claims located
approximately 100 kilometers northeast of La Ronge, Saskatchewan,
• Flanked by previous producing gold deposits (see Figure 1),
• Prospective geology and multiple high-grade gold showings across the
Property (see Figure 2); and
• All season highway access.
Pelangio’s CEO Ingrid Hibbard commented, “We are pleased to have the opportunity to acquire the
Hailstone Property located in the highly prospective La Ronge Gold Belt. We are excited to begin our
exploration activities and prospecting is currently underway.”
Geological Description
The Hailstone Property is located within the Central Metavolcanic Belt of the La Ronge Domain of north-
central Saskatchewan, which represents a portion of the Paleoproterozoic Trans-Hudson Orogeny. The
Property comprises a southwest-northeast trending metavolcanic succession intruded by multi-phase
intrusive rocks of the Berven Lake Pluton. Gold and copper mineralization (Figure 2 compilation) on the
Property is hosted within quartz veins and quartz rich pegmatite dikes associated with southwest -
northeast trending shear zones subsidiary to the terrain-bounding McLennan Lake Tectonic Zone.
The reader is cautioned that the assay values presented in the compilation map in Figure 2 are historical
in nature. The Company has not confirmed these historical numbers.
Terms of the Option Agreement and Work Commitment
The Option Agreement is developed in two stages:
1. First Option whereby Pelangio may earn 51% interest;
2. Second Option whereby Pelangio may earn an additional 39% interest for a 90% total interest in
the Hailstone Property
3. A joint venture may be formed between the two parties at either the completion of the first or
second option
Pelangio Exploration Inc. News Release – July 15, 2019 2
First Option
In order to acquire a 51% interest in the Hailstone Property, Pelangio must make the following cash
payments and share issuances and complete a total of $135,000 in exploration expenditures:
Share
Issuance
Cash
Payments
Work
Commitment Year
50,000 shares $10,000 - Within five days of the date the agreement is accepted by
the TSXV (the “Effective Date”)
- - $35,000 On or before October 1, 2019
- $15,000 - On or before the first anniversary of the Effective Date
- - $100,000
On or before the second anniversary of the Effective date;
Grant 1.5% Net Smelter Royalty (“NSR”) on or before the
second anniversary of the Effective Date
50,000 shares $25,000 $135,000
Second Option
In the event that Pelangio wishes to acquire an additional 39% interest in the Hailstone Property it shall
complete the following obligations:
Share
Issuance
Cash
Payments
Work
Commitment Year
- $50,000 - On or before the second anniversary of the Effective Date
- - $150,000 On or before the third anniversary of the Effective Date
No further
share issuance $50,000 $150,000
This agreement is subject to the approval of the TSX Venture Exchange.
Operatorship
The Vendors shall act as Operator until a joint venture is formed (the “Option Period”) and shall be
responsible for all work permits, environmental compliance, payment of contractors, insurance and
other matters relating to work carried out on the Property and shall indemnify and save harmless
Pelangio against any problems or liability with respect to such matters. The Vendors shall provide to and
review its exploration and development plans with Pelangio and Pelangio agrees to provide comment
and solicited input with respect to prospective exploration and development programs.
Qualified Person
Kevin Filo, P. Geo. (Ontario), is a Qualified Person within the meaning of National Instrument 4 3-101.
Mr. Filo has approved the technical data disclosed in this release.
Pelangio Exploration Inc. News Release – July 15, 2019 3
Figure 1: Hailstone Property showing proximity to previous producing gold deposits, and infrastructure
Figure 2: Showing historical and more recent 2018 grab sampling results on the Hailstone Property
Pelangio Exploration Inc. News Release – July 15, 2019 4
About Pelangio
Pelangio successfully acquires and explores camp-sized land packages in world-class gold belts. The
Company operates in both Canada and Ghana, West Africa, an English -speaking, common law
jurisdiction that is consistently ranked amongst the most favourable mining jurisdictions in Africa. The
Company is exploring three 100%-owned camp-sized properties: the 25km2 Birch Lake Property located
adjacent to First Mining’s Springpole Gold Project, the 100 km2 Manfo Property, the site of seven recent
near-surface gold discoveries, and the 284 km2 Obuasi Property, located 4 km on strike and adjacent to
AngloGold Ashanti’s prolific high-grade Obuasi Mine. The company is also exploring two properties
located in the Timmins Camp: the Dome West Property, located 800m from the Dome Mine, and the
Dalton Property located 1.5km from the Hollinger Mine.
For additional information, please visit our website at www.pelangio.com, or contact:
Ingrid Hibbard, President and CEO
Tel: 905-336-3828 / Toll-free: 1-877-746-1632 / Email: [email protected]
Forward Looking Statements
Certain statements herein may contain forward-looking statements and forward-looking information within the
meaning of applicable securities laws. Forward-looking statements or information appear in a number of places
and can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations
of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved. Forward-looking statements and information include statements regarding
the Company’s potential acquisition of the Hailstone Property, the Company’s strategy of acquiring large land
packages in areas of sizable gold mineralization, the Company’s plans to follow-up on previous work, the issuance
of the number of shares required to complete the exercise of the option to acquire the Hailstone Property, the
obtaining of TSXV acceptance of the proposed acquisition, and the Company’s exploration plans. With respect to
forward-looking statements and information contained herein, we have made numerous assumptions, including
assumptions about the state of the equity markets. Such forward-looking statements and information are subject
to risks, uncertainties and other factors which may cause the Company’s actual results, performance or
achievements, or industry results, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statement or information. Such risks include the changes in equity
markets, share price volatility, volatility of global and local economic climate, gold price volatility, , increases in
costs, exchange rate fluctuations, speculative nature of gold exploration and other risks involved in the gold
exploration industry, and in particular in relation to the Hailstone Property, the risk that Pelangio might not obtain
TSXV approval to proceed with the transaction, might not encounter favourable exploration results, might not fully-
exercise its option to acquire the Hailstone Property. See the Company’s annual and quarterly financial statements
and management’s discussion and analysis for additional information on risks and uncertainties relating to the
forward-looking statement and information. There can be no assurance that a forward -looking statement or
information referenced herein will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements or information. Also, many of the factors are beyond the control of the
Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. We
undertake no obligation to reissue or update any forward-looking statements or information except as required by
law. All forward-looking statements and information herein are qualified by this cautionary statement.
Neither 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.