Pancon Announces Debt Settlement and Option Grant
Pancon Announces Debt Settlement and
Option Grant
Toronto, Ontario--(Newsfile Corp. - June 10, 2021) - Pancontinental Resources Corporation (TSXV:
PUC) ("
Pancon
" or the "
Company
") announced that it has agreed to settle an aggregate of $103,000
of indebtedness owed to certain non-arm's length creditors of the Company through the issuance of an
aggregate of 515,000 common shares ("
Common Shares
") of the Company at a deemed price of
$0.20 per Common Share (the "
Debt Settlement
"). The Debt Settlement remains subject to receipt of
all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange.
All securities issued in connection with the Debt Settlement will be subject to a statutory hold period of
four months plus a day from the date of issuance in accordance with applicable securities legislation.
The Debt Settlement will constitute a "related party transaction" as defined in Multilateral Instrument 61-
101 -
Protection of Minority Securityholders in Special Transactions
("
MI 61-101
"), as insiders of the
Company will be issued an aggregate of 515,000 Common Shares. The Company is relying on the
exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101
contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the Company is not listed on a specified
market and the fair market value of the Common Shares being issued to insiders in connection with the
Debt Settlement does not exceed 25% of the market capitalization of the Company, as determined in
accordance with MI 61-101. A material change report will be filed not less than 21 days before the
closing date of the Debt Settlement. This shorter period was reasonable and necessary in the
circumstances, as it was necessary for the Company to complete the Debt Settlement to immediately
improve the financial position of the Company.
In addition, the Company announces that is has granted an aggregate of 105,000 options to purchase
Common Shares of the Company exercisable at a price of $0.25 per Common Share for a period of five
(5) years to a director of the Company, and an aggregate of 150,000 options to purchase Common
Shares of the Company exercisable at a price of $0.25 per Common Share for a period of one (1) year
to a director of the Company. The Common Shares issuable upon exercise of the options are subject to
a four month hold period from the original date of grant.
About Pancon
Pancon is a Canadian junior mining company focused on exploring the prolific and underexplored
Carolina Slate Belt in Chesterfield County, South Carolina, USA. In January 2020, Pancon won the
exclusive right to explore the former Brewer Gold Mine property. Between 1987-1995, Brewer produced
178,000 ounces of oxide gold
from open pits that extended to 65-meter depths, where copper and gold-
rich sulphides were exposed but could not be processed by the oxide heap leach processing facility
(
Zwaschka, M. and Scheetz J.W., 1995, Detailed Mine Geology of the Brewer Gold Mine, Jefferson,
South Carolina, Society of Economic Geologists
). Brewer hasn't been explored since 1997, and most
of the tools used previously to explore the property have since been updated with more advanced
technologies. Brewer is a high sulphidation system driven by a sub-volcanic intrusive and possibly
connected to a large copper-gold porphyry system at depth, as indicated by: widely known prospective
geology, including diatreme breccias; associated high sulphidation alteration; gold and copper
mineralization; and geophysics (
Schmidt, R.G., 1978, The Potential for Porphyry Copper-Molybdenum
Deposits in the Eastern United States, U.S. Geological Survey
). Pancon's 100%-owned, 1,500-acre
Jefferson Gold Project nearly completely surrounds the 1,000-acre former Brewer Gold Mine property,
and both Jefferson and Brewer are located 12 kilometers northeast along trend from the producing Haile
Gold Mine, which produced 137,413 ounces of gold in 2020 (
https://oceanagold.com/operation/haile/)
.
For further information, please contact:
Layton Croft, President & CEO or Jeanny So, Manager, External Relations
E:
T: +1.647.202.0994
For additional information please visit our new website at
www.panconresources.com
and our Twitter
feed:
@PanconResources
.
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 news release contains forward-looking information which is not comprised of historical facts.
Forward-looking information is characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other
factors that could cause actual events, results, and opportunities to differ materially from those
expressed or implied by such forward-looking information. Factors that could cause actual results to
differ materially from such forward-looking information include, but are not limited to, changes in the state
of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or
governmental approvals, and other risks involved in the mineral exploration and development industry,
including those risks set out in the Company's management's discussion and analysis as filed under the
Company's profile at
www.sedar.com
. Forward-looking information in this news release is based on the
opinions and assumptions of management considered reasonable as of the date hereof, including that
all necessary governmental and regulatory approvals will be received as and when expected. Although
the Company believes that the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance should not be placed on such
information. The Company disclaims any intention or obligation to update or revise any forward-looking
information, other than as required by applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/87234