Panther Metals PLC (LSE:PALM) a company focused on mineral exploration in Canada and Australia, is pleased to announce the signing of a purchase option agreement over four multicell mining claims (the “Properties” or “Claims”) covering a total area of 7.7km2 to supplement the Obonga Project’s 235km2 of prospective greenstone belt coverage,160km north of Thunder Bay in the Province of Ontario, Canada.
Darren Hazelwood, Chief Executive Officer, commented:
“Site visits. Favourable inspection of visual core. Result, the acquisition of four more licence areas.”
The purchase option agreement covers the four named properties: Wig; Z2 Gold; Tommy W; and Otter Gold, as outlined below. Each of the properties consists a single multicell mining claim held by Mr Aki Siltamaki. A map showing the location of the Properties is available at the following link: https://www.panthermetals.co.uk/images/2021/Obonga_Project_-_Aki_Siltamaki_Properties_Map.jpg
The Wig Property is directly adjacent to the north-western side of Panther’s current Awkward Conduit Prospect (“Awkward”) on the southern flank of the Awkward Lake zoned mafic intrusive body. Wig supplements and extends the Awkward prospect area which is targeting intrusive hosted palladium, platinum, nickel, copper, and cobalt.
Z2 Gold Property
The Z2 Gold property is located on the southern boundary of the Obonga Project and covers magnetic and electromagnetic geophysical targets. A limited amount of diamond drilling was conducted in this area during the 1970s, with 6 drill holes on two 725m spaced cross-sections perpendicular to the geophysical anomaly. Given the historical drilling intercepts of up to 0.76m @ 5.64g/t Au on the eastern section and up to 14m of disseminated sulphides, including 3m @ 0.49% Zn, on the western section, this area is considered worthy of further investigation.
Tommy W Property
The Tommy W property adjoins and provides a westward extension to Panther’s Tommyhow Gold Prospect which is a structural target prospective for shear hosted orogenic gold mineralisation.
Otter Gold Property
The Otter Gold Property is immediately southwest of Panther’s Wishbone VMS – Base Metals & Gold prospect area. Panther’s recent drilling campaign has centred on Wishbone, with drill core assays currently awaited.
The purchase option agreement (“Purchase Option”) for the four Properties, listed in Table 1 and held 100% by Mr Aki Siltamaki, allows Panther the option to purchase the Claims for a total cash consideration of CAN$200,000 and the award of a 1.5% net smelter return (“NSR”) royalty as summarised below.
In addition, in order to complete the purchase Panther will need to have drilled no less than an aggregate 1,800 metres within the total package of claims during the four-year option period, and as a minimum will need to conduct at least one diamond drill hole on each of the individual claim areas.
The Purchase Option price, payable on the signing of the agreement is CAD$30,000 with further payments of CAD$10,000 due on each anniversary of the date of signing for three consecutive years.
The Purchase Option gives Panther the option to purchase the Claims, and the project documents for a consideration comprising:
· CAD$200,000 in cash; and
· 1.5% NSR royalty (which has provision for Panther to reduce the royalty to 1.0% NSR through a CAD$1,000,000 buy-back).
The 1.5% NSR royalty is on the net value of all ores, minerals, metals, and materials mined and removed from the four claims included in the option agreement and sold or deemed to have been sold by or for the Royalty Payor and a 1.5% a gross overriding royalty for diamonds.
Table 1: Claims subject to the Purchase Option
Obonga Project Overview
The Obonga Project covers a total area of over 235km2 and constitutes an 88% coverage of the Obonga Greenstone Belt which consists of a 32km long by up to 9km wide, broadly east-west striking, tract of Archean age metamorphosed volcanic, sedimentary and intrusive rocks. It is a highly prospective setting for the formation of orogenic shear-hosted gold deposits, volcanogenic massive sulphide copper-lead-zinc-silver deposits, komatiite/ultramafic associated nickel-copper-platinum group metal (“PGM”) deposits and porphyry style base metal mineralisation.
Panther’s Obonga Project currently includes seven high prospectivity targets for gold, nickel, PGM and base metals identified by partner company Broken Rock Resources Ltd. The remaining ground over the belt is either designated areas as environmental reserves and not available for exploration, or under minor landholding by third parties.
Panther’s aim at Obonga is to create shared value that benefits local communities and to explore and develop projects in an environmentally sensitive manner.
For further information please contact:
Panther Metals PLC:
Darren Hazelwood, Chief Executive Officer: +44(0) 1462 429 743
+44(0) 7971 957 685
Mitchell Smith, Chief Operating Officer: +1(604) 209 6678
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