Cranbrook, British Columbia, (Newsfile Corp. – March 23 , 2020) – MG Capital Corporation (“MG” or the “Corporation”) (TSXV: DLP) and its wholly owned subsidiary, DLP Resources Inc.(“DLP”), are pleased to report that the ground geophysical survey, recently completed on the Aldridge 1 and Aldridge 2 properties, has produced encouraging results on both the Aldridge 1 and Aldridge 2 properties.
The M.T. (magnetotellurics) geophysical survey consisted of 20 East-West lines totalling 32.8 km. The identification of the M.T. geophysical survey results highlight an area already considered geologically and structurally similar to the NorthstarSullivan Corridor, which is the feeder system to the world class Sullivan orebody.
On the Aldridge 1 property, the survey located 2 large anomalies. These anomalies are supported by surface showings of Pb-Zn-Ag mineralization, and abundant Sullivan type alteration and Sullivan lithologies. The northern anomaly in plan measures 800 m x 800 m and can be seen to a depth of plus 1000 meters. The southern anomaly in plan is 800 m x 100 m and can be traced to a depth of plus 1000 meters. Six diamond drill holes are planned to test both anomalies for a Pb-Zn-Ag rich Sullivan type massive sulphide deposit.
On the Aldridge 2 property, the MT survey located 2 significant anomalies. The largest anomaly measures 400m x 500m in plan and can be traced to a depth of 200 meters, the second anomaly measures 200m x 400m in plan. These anomalies are also supported by Sullivan type alteration and lithologies. Three diamond drill holes are planned to test these anomalies for Sullivan type massive sulphides.
David L. Pighin, consulting geologist and co-founder of DLP Resources Inc., is the qualified person (“QP”)of the Corporation as defined by National Instrument 43-101. Mr. Pighin has reviewed and approved the technical contents of this news release.
Property Earn-In Agreement
MG and DLP are also pleased to announce that they have entered into a property earn-in agreement dated March 1, 2020 (the “Earn-In Agreement“) with each of Jonathan Sean Kennedy, R.D. Craig Kennedy, Darlene E. Lavoie, Thomas Peter James Kennedy, Michael Cameron Kennedy and Frederick A. Cook (for Salt Spring Imaging, Ltd.) (together, the “Field Experts“). Under the Earn-In Agreement, the Field Experts have agreed to grant to DLP an option to acquire up to a 100% interest in certain mineral claims comprising the Son of Captain, Liger and Hungry Miner properties (the “Properties“), which are situated in the vicinity of DLP’s Aldridge 1, Aldridge 2 and Hungry Creek properties, respectively.
In order to exercise the option to acquire a 100% interest in the Properties (the “Option“), DLP will exclusively earn in to the ownership of the Properties by paying an aggregate of 450,000 common shares of MG (the “Earn-In Shares“) through the issuance of 112,500 Earn-In Shares per year over a four-year period, issuable to the Field Experts on a pro-rata basis.
Pursuant to the Earn-In Agreement, DLP and MG will have the option at their discretion to accelerate the payments at any time during the four-year term of the Earn-In Agreement and acquire the Properties on a 100% basis by immediately completing the issuance of the Earn-In Shares as described above.
Upon exercise of the Option, the Field Experts shall be entitled to a 1% NSR royalty payable on each of the Properties, with DLP being able to buy back such NSR royalties in exchange for an aggregate of $1,000,000, payable to the Field Experts on a pro-rata basis at DLP and MG’s discretion.
The transactions contemplated under the Earn-In Agreement are subject to the approval of the TSX Venture Exchange.
The Company’s website is now available for viewing at: www.dlpresourcesinc.com
For further information, please contact:
MG Capital Corporation DLP Resources Inc.
Jim Stypula, Chief Executive Officer
Robin Sudo, Chief Financial Officer and Corporate Secretary
NEITHER THE 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the ability of the Corporation to issue the Earn-In Shares, the ability of the Corporation to obtain TSX Venture Exchange approval of the transactions contemplated under the Earn-In Agreement, the ability of the Corporation to exercise the Option and DLP’s plans for 2020. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; inability to obtain approval of regulatory authorities, including the TSX Venture Exchange, for the transactions contemplated by the Earn-In Agreement; and reliance on any other third parties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MG assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.