Vancouver, British Columbia, February 11, 2021 – Parallel Mining Corp. (the “Company”) (TSX‑V: PAL) announces that it has entered into a definitive property purchase agreement (the “Agreement”) with Tigray Holdings Corp. (“Tigray”) and Tigray’s wholly owned subsidiary in Ethiopia, for the acquisition (the “Acquisition”) of a 95% interest in the North Terer and Ziban Gedena property licenses (the “Property”) granted by the Ethiopian government, in consideration for: (a) the cash payment of C$250,000; (b) the issuance of common shares of the Company representing C$4.275 million; and (c) the grant of the 2% net smelter return royalty which may be reduced to 1% at to the Company’s option for US$1,000,000.
Within 90 days following the execution date of the Agreement, Tigray will incorporate a new company under the laws of Ethiopia for the purpose of holding the Property, which will be owned 95% by Parallel and 5% by Tigray. The Property is located in Northern Ethiopia as provided in the attached location map, and will be referred to by the Company as the Star Property.
Concurrent with this transaction, Parallel is proposing to raise up to C$3 million by way of an equity offering at an offering price per security of C$0.15.
Parallel is also pleased to announce the appointment of Ian Cooper to its board of directors as Technical Lead Director. Mr. Cooper is based out of Australia and is FAusIMM and Fellow of Geol. Soc. London. He has over 30 years of experience in resource development in West and Central Africa working on significant projects in gold and iron ore.
“We have been working with Ian over the past few years at opportunities in Ethiopia and are looking forward to having him oversee the technical direction of the company. We are extremely excited about the projects Ian has identified in the Arabian Nubian shield and look forward to exploring and developing these properties over the coming months and years”, said John Anderson, CEO of the Company.
“We have been committed to East Africa for a number of years and identified the Arabian Nubian Shield in Ethiopia, as the cornerstone to our long-term plans to develop large scale gold projects. I am excited to be part of the Parallel Team and establishing an important base in the Tigray Province of Ethiopia where we see incredible resource potential”, said Ian Cooper.
The closing of the Acquisition is subject to several conditions including, but not limited to the following: completion of a National Instrument 43-101 form of technical report on the Property and stock exchange approval.
The Company and Tigray are at arm’s length and no finder’s fees are payable in connection with the Acquisition.
For further information, please contact:
PARALLEL MINING CORP.
President & Chief Executive Officer
Parallel Mining Corp.
Neither 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 contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “might”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information and/or statements. Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions of Parallel Mining Corp. which have been used to develop such statements and/or information but which may prove to be incorrect. Although Parallel Mining Corp. believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements as Parallel Mining Corp. can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: receipt of all applicable regulatory and stock exchange approvals to complete the Acquisition. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation: risks associated with the uncertainty of obtaining all applicable regulatory stock exchange approvals. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.
Figure 1. Location Map for Star Project