Toronto: TSX-V: MHI
Frankfurt: MLN/WKN: A1JKJN
OTC Market (US): MHIFF
VANCOUVER, BC, April 14, 2021 /CNW/ - Mineral Hill Industries
Ltd. ("MHI" or "Company"), listed on the TSX Venture
Exchange ("TSXV") under the trading Symbol "MHI", and on the
Deutsche Boerse, Frankfurt under
the trading Symbol "MLN" wishes to announce that subsequent to its
news release dated December 15, 2020
and February 9, 2021, it has received
"Conditional Acceptance" from the TSXV for the proposed transaction
entered into a definitive Earn-In Option Agreement ("EIO
Agreement") with Cardinal Geoconsulting Ltd. ("Owner")
to acquire up to a 100% interest in the Dot-Apex Claim Group
("Apex Claims") and the Master-ACE Claim Group ("ACE
Claims"), located in south-western British Columbia. The Apex Claims
consist of contiguous claim cells totalling 2,406.13 hectares and
the ACE Claims totalling 695.09 hectares.
As follow-up to previous field surveys, Mr. Daniel G. Cardinal, P. Geo, a professional
geoscientist and Fellow of The Geological Association Of Canada,
carried out substantial field work including reconnaissance mapping
and sampling surveys and documented the work and findings in a BC
Geological Survey Assessment Report, dated December 13, 2013. The Assessment Report
references the findings of quartz veins carrying gold values,
whereby seven selected grab samples contained between 0.807 to
6.778 gm/t Au.
Mr. William Brian Lennan, P.Geo, an independent Qualified
Person ("Q.P."), has completed a 43-101 Technical Report
which was accepted by the TSXV.
Under the EIO Agreement MHI has the irrevocable option to
acquire an initial 20% interest in the Apex-Claims (the "First
Apex Option") by: (a) paying to the Owner $10,000 cash; (b) issuing 100,000 common shares
to the Owner; and (c) incurring or funding $84,728 of exploration expenditures on the Apex
Claims before the first anniversary of the Effective Date.
The Effective Date is the later of (i) the date the EIO Agreement
is approved by the TSXV and (ii) the closing of PP1 (as described
below).
Subject to the Company having exercised the First Apex Option,
the Owner will grant the Company a second option to acquire a
further 80% interest in the Apex Claims, bringing its total earned
interest from 20% to 100%, by: (a) paying to the Owner $15,000 cash; (b) issuing 150,000 common shares
to the Owner; and (c) incurring or funding $125,000 of exploration expenditures on the Apex
Claims before the second anniversary of the Effective
Date.
Under the EIO Agreement, MHI has the option to acquire an
initial 20% interest in the ACE Claims (the "First ACE
Option") by: (a) paying the Owner $10,000 cash; (b) issuing 100,000 common shares
to the Owner; and (c) incurring or funding $47,300 of exploration expenditures on the ACE
Claims before the first anniversary of the ACE Effective
Date. The ACE Effective Date is the later of the date on
which the First Apex Option Exercise Notice is delivered to the
Owner and closing of PP2 (as described below).
Subject to the Company having exercised the First ACE Option,
the Owner will grant the Company a second option to acquire a
further 80% interest in the ACE Claims, bringing its total earned
interest from 20% to 100%, by: (a) paying the Owner $15,000 cash; (b) issuing 150,000 common shares
to the Owner; and (c) incurring or funding $74,100 of exploration
expenditures on the ACE Claims before the second anniversary of the
ACE Effective Date. The Owner will retain a 2% net profit
interest royalty on the Apex Claims and the ACE Claims.
Financings
MHI intends to complete two financings in connection with the
EIO Agreement, PP1 and PP2, whereby PP1 will be a "unit offering"
to raise up to $180,000 and the
proceeds will be dedicated for general working capital including
the cash payments due to the Owner, and PP2 will be a
"flow-through" share offering, to raise up to $300,000 and the proceeds will be dedicated for
exploration of the Apex Claims and to update the existing
Geological Assessment Reports to a Technical Report in accordance
with National Instrument 43-101. The terms of the
financings are subject to the Company's market price after its
shares resume trading on the TSXV. The Company intends to
raise further funds subsequent to PP1 and PP2 in order to exercise
the ACE Options.
The EIO-Agreement and associated financings (PP1 and PP2) are
subject to TSXV approval.
The Company and Owner have agreed that Mr. Daniel G. Cardinal is to operate the Company's
exploration programs to earn the Apex Option. Mineral Hill
greatly appreciates Mr. Cardinal's involvement in the project. Mr.
Daniel Cardinal, P. GEO. also a Q.P.
under the rules of the TSXV, has reviewed and approved the
technical content of this News Release.
The Company seeks Safe Harbor
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain forward-looking statements
based on assumptions and judgments of management regarding future
events or results. Such statements are subject to a variety of
risks and uncertainties which could cause actual events or results
to differ materially from those reflected in the forward-looking
statements. There is no assurance the private placement, property
option or reinstatement of trading referred to above will close on
the terms as stated, or at all. The Company disclaims any intention
or obligation to revise or update such statements.
The securities which may be offered have not been,
nor will be, registered under the United States Securities
Act of 1933, as amended, and may not be offered or
sold in the United States or to
U.S. persons without registration or applicable exemption from the
registration requirement of such Act. This release does not
constitute an offer for sale of such securities in the United States of America.
SOURCE Mineral Hill Industries Ltd.