Peruvian Metals Reports Third Quarter Throughput at the Aguila Norte Processing Plant and Announces Closing of Second Tranche of Private Placement
Toronto, October 2, 2020 - Peruvian Metals Corp. (TSXV: PER) ("Peruvian Metals" or the "Company") is pleased to provide an update regarding the mineral processing at its 80% owned fully permitted Aguila Norte Processing Plant ("Aguila Norte" or the "Plant") located in Northern Peru.
During the third quarter of 2020, Peruvian Metals processed 4,240 metric tonnes ("mt") and as of September 30th stockpiled a further 699 mt at Aguila Norte.The Company is very pleased to have exceeded production levels compared to Q3 2019 production of 4,187 mt. Despite being shut down for almost five months due to COVID restrictions, mineral processing at the Plant started July 28th after establishing all health protocols required by the Peruvian Government.
Jeffrey Reeder, CEO of Peruvian Metals, comments: "The Company's Aguila Norte processing facility is now fully operational and is achieving consistent production since the restart of the Peruvian economy. Our mineral suppliers are pleased with the quality of concentrates being produced and are committed to continue shipping more mineral for processing. Our Company continues to work towards increasing profit margins and creating other revenue streams."
The Company is also pleased to close the second tranche of 1.6 million units of its previously announced private placement offering of up to five million units at an offering price of five cents per unit (see the Company's press release dated Aug. 18, 2020), to raise gross proceeds of $80,000. Each unit consists of one common share of the company and one share purchase warrant to acquire one additional common share at an exercise price of 10 cents per share until October 2, 2022. In the event that the common shares of the Company trade at a closing price greater than 20 cents per share for a period of 10 consecutive days, then the Company may deliver a notice to the warrantholders that they must exercise their warrants within the next 30 days or the warrants will expire. The net proceeds from the offering will be used to finance further work on the Company's mineral resource properties in Peru, as well as to provide the Company with working capital for general and administrative expenses.
The Aguila Norte processing plant has an environmental permit ("IGAC") from the Peruvian government which provides the Plant with the ability to expand operations past the current 100 tonnes per day level. Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.
About Peruvian Metals Corp.
Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.
For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com.
Peruvian Metals Corp. is a Canadian resource company listed on the
TSX Venture Exchange: Symbol "PER"
For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290
Website: www.peruvianmetals.com
Email: jeffrey.reeder@peruvianmetals.com
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.
Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.
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