Cranbrook, British Columbia–(Newsfile Corp. – March 23, 2020) – MG Capital Corporation (TSXV: DLP) (“MG” or the “Corporation“) 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 Northstar-Sullivan 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:
Figure 1. Location Map
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6456/53664_518c853dc45528b2_001full.jpg
