VANCOUVER, British Columbia, April 20, 2022 (GLOBE NEWSWIRE) -- Prosper Gold Corp. (“Prosper” or the “Company”) (TSXV:PGX) is pleased to announce that it has entered into a non-binding letter of intent (the “LOI”) dated April 20th, 2022 with CAVU Mining Corp. (“CAVU”) (CNSX: CAVU), a company incorporated under the laws of British Columbia, to grant CAVU the right to earn and acquire Prosper’s 51% interest (the “Option”) in the Star Project located in the province of British Columbia (the “Proposed Transaction”). Under the terms of the LOI, CAVU may exercise the Option by: (i) issuing 1,250,000 common shares in the capital of CAVU to Prosper within seven days after execution of the Definitive Agreement (defined below) (the “Effective Date); and (ii) making cash payments to Prosper in the following amounts:
- $100,000 within seven days of the Effective Date;
- $285,000 by July 1, 2022;
- $385,000 within one year of the Effective Date; and
- $385,000 within two years of the Effective Date.
Should CAVU not exercise the 51% option in full, Prosper will have a 30-day period from the termination date of the Option to purchase CAVU’s 49% interest in the Star Project for a lump sum cash payment of $500,000.
“Prosper is focused in Red Lake at its flagship Golden Sidewalk Project,” commented Pete Bernier, President & CEO, “The Star has sat idle for a number of years and Prosper will become a significant shareholder of CAVU through the transaction. This will provide Prosper shareholders with exposure to active exploration on two high quality assets.”
The parties intend to enter into a definitive option agreement which will govern the Proposed Transaction (the “Definitive Agreement”).
For a detailed overview of Prosper please visit www.ProsperGoldCorp.com
ON BEHALF OF THE BOARD OF DIRECTORS
Per: “Peter Bernier”
President & CEO
For further information, please contact:
President & CEO
Prosper Gold Corp.
Cell: (250) 316-6644
Unless otherwise specified, all dollar amounts used herein refer to the law currency of Canada.
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Option and the Definitive Agreement. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, the Company’s ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this news release represent the expectations of the Company as of the date of this news release, and, accordingly, are subject to change after such date. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.