VANCOUVER, BRITISH COLUMBIA – (May 23, 2017) – Pan Global Resources Inc. (“Pan Global” or the "Company") (TSX Venture Exchange: PGZ) ispleased to announce the Company has entered into a Letter of Intent (LOI) with Evalam 2003 S.L. (the “Vendor”), a private Spanish company, to purchase 100% of the Vendor’s gold / copper / zinc mineral prospectin Spain, subject to a royalty as described below. The Vendor has applied for an exploration license in the provinces of Seville and Huelva, Kingdom of Spain, to conduct evaluation and mineral exploration on a mineral prospect known as the “Escacena Property”. The proposed transaction is subject to a number of conditions, including TSXV approval.
The Escacena Property
The Escacena Property covers 68 mining quadriculars or approximately 2,060 hectares in the Iberian Pyrite Belt, on the Western extension of the same trend of volcanic rocks that host large massive sulphide ore deposits at the Aznalcollar, Los Frailes and Las Cruces Mines. It is within 5km of Aznalcollar mine. The project includes an untested gravity anomaly with adjacent copper and gold mineralization. Historical channel sampling along the full length of a mine tunnel along a fault up-dip from the gravity anomaly returned 30m at an average grade of 2.06 grams per tonne gold. From information provided by the Vendor, wide-spaced drilling by Exxon on separate gravity target in the south of the property shows broad intervals of stock work copper mineralization and massive sulphide mineralization under Tertiary sedimentary cover over approximately 1.3 kilometres strike, and is open in several directions. Better intervals include, 4.68 metres at 2.94% copper, 3 metres at 3.24% copper and 2.82 metres at 2.2% copper. The area has not had any modern exploration for 30 years.
Terms of the Acquisition
The terms of the LOI provide for payment of CAD$350,000 to the Vendor and funding by the Company of $1,000,000 in exploration expenditures under the following conditions:
|Issuance Date* (defined below)||$ 30,000||$ 30,000|
|12 months after Issuance Date||$ 50,000||$ 80,000|
|24 months after Issuance Date||$100,000||$ 180,000|
|36 months after Issuance Date||$170,000||$ 350,000|
|12 months after Issuance Date||$ 200,000||$ 200,000|
|24 months after Issuance Date||$ 300,000||$ 500,000|
|36 months after Issuance Date||$ 500,000||$1,000,000|
Robert Baxter (FAusIMM), a Director of Pan Global Resources and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Baxter is not independent of the Company.
About Pan Global Resources
Pan Global Resources Inc. is actively engaged in base and precious metal exploration in Spain, and is pursuing opportunities from exploration through to mine development.
On Behalf of the Board of Directors
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Tim Moody, President and CEO
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.