P2 Gold Extends BAM Option Term

VANCOUVER, British Columbia, May 08, 2023 (GLOBE NEWSWIRE) -- P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD) (OTCQB:PGLDF) reports that, subject to TSX Venture Exchange (the “Exchange”) approval, it has restructured the option agreement (the “Option Agreement”) dated June 29, 2020 to acquire 100% of the BAM Property by extending the term of the option. The BAM Property is located in the Golden Triangle in northwest British Columbia and together with the Company’s adjoining Ball Creek Claims is known as the BAM Project. (See the Company’s news release dated July 2, 2020, announcing the acquisition of the option to acquire the BAM Property).

In extending the term of the option, the Company has entered into an amending agreement (the “Amending Agreement”) amending the terms of the Option Agreement pursuant to which the Company can acquire a 100% interest in the BAM Property. Under the Option Agreement, the Company was required to issue 800,000 shares in its capital and pay $550,000 to the vendor on June 29, 2023 to acquire an initial 70% interest in the BAM Property. Under the Amending Agreement, the Company will now issue 800,000 shares in its capital on June 29, 2023 and pay $200,000 on September 30, 2023 and issue 200,000 shares in its capital and pay $550,000 on June 29, 2024 to acquire an initial 70% interest in the BAM Property.

Following exercise of the option to acquire a 70% interest, the Company has the right for a period of 120 days to acquire the remaining 30% interest in the BAM Property, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company at its election. If the Company elects to not purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with the Company appointed the operator. During the first three years of the joint venture, the Company will fund the vendor’s participating interest in the joint venture. If the vendor fails to sell its interest in the joint venture during such three-year period, the vendor’s interest will convert to a 2% net smelter returns royalty (the “nsr”), provided that the Company will have the opportunity to purchase the vendor’s interest prior to such conversion for $7.5 million. Following the conversion of the vendor’s interest to a 2% nsr, the Company may purchase 1% of the nsr for $2,000,000 (inflation adjusted from 2020). The vendor has also agreed to assign to the Company two claims that form part of the BAM Property for $40,000 (paid) and a 2% nsr, 100% of which can be purchased by the Company for $1,125,000 prior to commercial production on such claims and 1% of which can be purchased for $300,000 (inflation adjusted from 2020) after commercial production is achieved on such claims.