Providence Gold Mines Inc. Net Profit Interest Agreement Signed for Stockpiles Re-Processing
October 24, 2019 - Providence Gold Mines Inc. (the "Company") (TSXV:PHD) is very pleased to announce that it has entered into an agreement permitting the re-processing of stockpiles on its Providence Mines, located in Tuolumne County, California. Ron Coombes, CEO, states: "Based upon the preliminary, positive stockpile trenching assays and anticipated phase two trenching success of the stockpile and potential for re-processing, this separate and unique proactive agreement offers both parties certainty upon a production decision."
Summary of Agreement:
The Ellers Family Trust and Providence Gold Mines Inc. have entered into an agreement (the "Agreement) whereby the Company may process the stockpile or stockpiles located on the Providence Mines in Tuolumne County, California. The Company will pay a net profit interest (NPI) of 10% to the Ellers Family Trust for such processing or reprocessing of numerous stockpiles.
This Agreement is separate and unique from the Lease with Option to Purchase Agreement dated April 2017, between the Company and the Ellers Family Trust, with the exception that the Ellers Family Trust will recognize and allow all evaluation costs incurred in analysing the potential of such stockpiles to be allocated towards the amount of the "Committed Expenditures" required by such Lease with Option to Purchase on the property.
Providence Gold Mines does not warrant or guarantee the profitability of processing said stockpiles but assumes the capital expenditure risks associated with the stockpile or stockpiles evaluation to determine the commercial viability.
We invite all shareholders and stakeholders to join the Providence Gold Mines portal on 8020 Connect. Join here: http://b.link/Providence
ON BEHALF OF THE BOARD
"Ronald Coombes"
Ronald Coombes, President & CEO
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.
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