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PX.V ·

Pelangio Exploration Completes Second Tranche of Private Placement

Financings

Pelangio Exploration Inc.

Pelangio Exploration Inc. News Release – August 9, 2017 1

82 Richmond Street East, Toronto, ON M5C 1P1 Tel: 905-336-3828 Fax: 905-336-3899

NEWS RELEASE

PELANGIO EXPLORATION COMPLETES SECOND TRANCHE 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 (August 9, 2017) – Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) (“Pelangio” or

the “Company”) is pleased to announce that it has closed the second tranche of its non-brokered private placement

originally announced July 6, 2017 and increased in size on August 1, 2017 (the "Private Placement"). This tranche

has raised a further $77,500 for the issuance of 1,550,000 units (the "Units") at a price of $0.05 per Unit, for total

proceeds to date of $523,500.

Each 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 $0.07 per share

until July 31, 2020. In the event that the Common Shares trade on the TSX Venture Exchange at a volume weighted-

average price of $0.14 or more per Common Share for any period of at least ten consecutive trading days after July

31, 2017, the Company shall be entitled to accelerate the expiry time of the Warrants to a date that is at least thirty

days from the date that written notice of such acceleration is provided to the holders of the Warrants by way of news

release, with the new expiry time specified in such notice.

The Company paid finder’s fees to Raymond James Ltd. in the amount o f $ 1 , 2 0 0 i n c a s h a n d 2 4 , 0 0 0 n o n-

transferable finder’s warrants, with each such warrant entitling the holder thereof to acquire one Common Share at a

price of $0.05 per share until July 31, 2020, subject to acceleration as described above.

All securities i s s u e d i n t h i s t r a n c h e o f t h e P r i v ate Placement are subject to a statutory hold period expiring on

December 10, 2017.

Two directors o f t h e C o m p a n y p a r t i c i p a t e d i n t h e P r i v a t e P l a c e m e n t , a c q u i r i n g 200,000 and 1 0 0 , 0 0 0 U n i t s ,

respectively, which constitutes a “related party transaction” for purposes of Multilateral Instrument 61 -101 –

Protection of Minority Security Holders in Special Transactions (“ MI 61-101”). The Company has relied on the

exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61 -101 from the valuation and minority shareholder

approval requirements in MI 61-101 in respect of such directors’ participation in the Private Placement, since neither

the fair market value of the subject matter of, nor the fair market value of the consideration for, each of the directors’

investments, when aggregated together, exceeds 25% of the Company’s market capitalization.

Any additional closings of this Private Placement will take place on or before August 18, 2017.

The Company intends to use the total proceeds from the Private Placement to begin the planned $2,000,000 multi -

phase exploration program and for working capital purposes, all as further described in the Company’s news releases

dated July 6, and August 1, 2017. All and any additional proceeds above $500,000 will be used for working capital

purposes.

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.

About Pelangio

Pelangio successfully acquires and explores camp-sized land packages in world-class gold belts. The Company

primarily operates in 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 100 km2 Manfo Property, the site of seven recent near-surface gold discoveries, the 264 km2 Obuasi

Property, located 4 km on strike and adjacent to AngloGold Ashanti’s prolific high-grade Obuasi Mine and the early-

stage 159 km2 Akroma Properties, which includes the Dormaa and Wamfie concessions.

Pelangio Exploration Inc. News Release – August 9, 2017 2

82 Richmond Street East, Toronto, ON M5C 1P1 Tel: 905-336-3828 Fax: 905-336-3899

For additional information, please visit our website at www.pelangio.com, follow us on Twitter @PelangioEx 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 i d e n t i f i e d b y t h e u s e o f w o r d s s u c h a s “ p l a n s ” , “ e x p e c t s ” o r “ d o e s n o t e x p e c t ” , “ i s e x p e c t e d ” , “ b u d g e t ” ,

“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 Private

Placement generally, the proposed use of proceeds and the Company’s exploration plans and drill program. 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 Private Placement 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, 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 factor s 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.