Major Precious Closes Acquisition of Greenland Skaergaard Precious Metals Project in Escrow

VANCOUVER, British Columbia, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Major Precious Metals Corp. (“Major Precious Metals” or the “Company”) (CSE:SIZE | OTC:SIZYF | FRANKFURT:3EZ) has closed in escrow its previously announced acquisition (the “Acquisition”) of a one-hundred percent interest in the Skaergaard precious metal project (the “Skaergaard Project”), pursuant to a definitive purchase agreement entered into with Platina Resources Ltd. (the “Vendor”). The Skaergaard Project consists of two exploration licenses located on the east coast of Greenland.

The Canadian Securities Exchange (the “Exchange”) has concluded that the Acquisition constitutes a fundamental change for the Company in accordance with the policies of the Exchange. As a result, the Acquisition remains subject to approval by the Exchange and the shareholders of the Company by way of written consent of the holders of the majority of the outstanding share capital of the Company. While the Exchange review is in process, the Exchange has consented to the Company closing the Acquisition in escrow (the “Escrow Closing”).

In the interim, Major Precious Metals and its consultants continue to work full-steam ahead on several projects to advance the Skaergaard Project including a Mineral Resource Estimate (MRE) and Preliminary Economic Assessment (PEA), and planning and preparation for the 2021 summer exploration and drilling programs.

Escrow Closing Terms

In consideration for the Skaergaard Project, the Company is required to complete a one-time cash payment of Cdn$500,000 (the “Cash Payment”), and issue 55,000,000 common shares to the Vendor (the “Consideration Shares”). In accordance with the Escrow Closing, the Company has deposited the Cash Payment in a segregated account and has issued the Consideration Shares. The Cash Payment, and the Consideration Shares, will be held in escrow and will not be released to the Vendor until such time as approval of the Exchange and the shareholders of the Company is received. Upon receipt of such approvals, the Cash Payment, and the Consideration Shares, will be released to the Vendor, and the exploration licenses comprising the Skaergaard Project will be transferred to the Company. In the event such approval is not received, the Cash Payment will be returned to the Company, and the Consideration Shares will be returned to treasury and cancelled.