Pelangio Exploration Completes First Tranche of Previously Announced Private Placement FOR Gross Proceeds of $734,000 and Further Increases Size of Private Placement This News Release is Intended FOR Distribution IN Canada Only and is Not Intended FOR
Pelangio Exploration Inc.
Pelangio Exploration Inc. News Release – May 19, 2020 1
82 Richmond Street East,
Toronto, ON M5C 1P1
Tel: 905-336-3828
Fax: 905-336-3899
NEWS RELEASE
PELANGIO EXPLORATION COMPLETES FIRST TRANCHE OF PREVIOUSLY ANNOUNCED
PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $734,000 AND
FURTHER INCREASES SIZE OF PRIVATE PLACEMENT
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TORONTO, Ontario (May 19, 2020) – Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) (“Pelangio” or the
“Company”) is pleased to announce that it has closed the first tranche of the non-brokered private placement
previously announced on May 7, 2020 and May 11, 2020 (the “Offering”). In this first tranche, the Company raised
aggregate gross proceeds of $734,000 (the “First Tranche”) by issuing 5,000,000 hard dollar units (the “HD Units”)
at a price of $0.12 per HD Unit and 957,142 common shares of the Company issued on a flow-through basis (the “FT
Shares”) at a price of $0.14 per FT Share.
Each HD Unit consists of one common share of the Company (a “Common Share”) and one Common Share purchase
warrant (“Warrant”). Each Warrant entitles the holder to purchase one Common Share at a price of $0.18 for a
period of two years from May 19, 2020 (the “Initial Closing Date”). The FT Shares will qualify as “flow-through
shares” (within the meaning of the Income Tax Act (Canada)).
The gross proceeds from the sale of the FT Shares will be used to incur qualifying Canadian Exploration Expenses.
Qualifying expenses are to be incurred by no later than December 31, 2021 for renunciation to investors of FT Shares
in the Offering effective December 31, 2020. The balance of the proceeds of the Offering will be used for general
corporate and working capital purposes, and for the development of the Company’s mining projects.
In connection with the closing of the First Tranche, the Company paid finder’s fees to Canaccord Genuity Corp., PI
Financial Corp., Haywood Securities Inc., and Laurentian Bank Securities Inc., each arm’s length finders, consisting of
an aggregate of $28,560 in cash and an aggregate of 238,000 non-transferrable warrants (“Finder Warrants”). Each
Finder Warrant entitles the holder to purchase one Common Share at a price of $0.18 for a period of one year from
the Initial Closing Date.
All securities issued in the First Tranche of the Offering, including the Finder Warrants, are subject to a statutory
hold period expiring on September 20, 2020.
A second and final closing of the Offering is expected to take place on or around May 29, 2020. Pelangio is pleased
to announce that due to additional demand, the Company has further increased the size of the Offering from
aggregate gross proceeds of up to $1,350,000 to aggregate gross proceeds of up to $1,450,000. The Offering remains
subject to final acceptance by the TSX Venture Exchange.
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.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale
of the securities in any jurisdictions in which such offer, solicitation or sale would be unlawful. Any offering made will
be pursuant to available prospectus exemptions and restricted to persons to whom the securities may be sold in
accordance with the laws of such jurisdictions, and by persons permitted to sell the securities in accordance with the
laws of such jurisdictions.
Pelangio Exploration Inc. News Release – May 19, 2020 2
About Pelangio
Pelangio acquires and explores land packages in world-class gold belts in Canada and Ghana, West Africa. In Canada,
the company is focusing on the 6.7 km2 Grenfell property located approximately 10 km from the Macassa Mine in
Kirkland Lake, the Dome West property located 800 metres from the Dome Mine in Timmins, the 25 km2 Birch Lake
Property located in the Red Lake Mining District and the Dalton Property located 1.5 km from the Hollinger Mine in
Timmins. In Ghana, the Company is focusing on t wo 100% owned camp-sized properties: 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. Ghana is an English speaking, common
law jurisdiction that is consistently ranked amongst the most favourable mining jurisdictions in Africa.
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
Offering generally, the proposed use of proceeds and the Company’s exploration plans. With respect to forward-
looking statements and information contained herein, we have made numerous assumptions, including assumptions
about our ability to close additional tranches of the Offering in a timely manner, if at all, and 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 ability of the Company to meet the conditions of closing, our ability to conduct our
exploration programs as planned, changes in equity markets, share price volatility, volatility of global and local
economic climate, gold price volatility, political developments in Ghana, increases in costs, exchange rate
fluctuations, speculative nature of gold exploration and other risks involved in the gold exploration industry. 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.