Earn-in agreement signed with gold producer; $500,000 private placement announced
CALGARY, Canada (Dec. 3, 2021) — Pennine Petroleum Corporation ("Pennine" or "the Corporation") (TSX-V: PNN) announces the signing of an Earn-in Agreement and a Private Placement to raise $500,000.
Earn-in Agreement
As announced on February 17, 2021, Pennine has been investigating projects in the mining sector. These efforts are based on the reality that there are currently more business opportunities in mining than exist in the junior oil and gas sector. Pennine is therefore pleased to announce it has signed an Earn-in Agreement (the “Agreement”) with Techshed Investments (Private) Limited which owns and operates a producing gold mine in Zimbabwe. The mine, located 15km from the city of Bulawayo, has installed capacity to process 40 tonnes of ore per day but, due to capital constraints, is currently processing less than half that amount. By addressing those capital constraints Pennine can almost immediately start earning a return on its investment in operations.
Private Placement
As stated above, the Agreement is also subject to financing and Pennine is therefore pleased to announce that the Corporation will be undertaking a non-brokered financing of up to 20 million Units for proceeds of $500,000 (the “Offering”). Each Unit is offered at $0.025 and comprises one common share (“Common Share”) and one common share purchase warrant (“Warrant”) with an exercise price of $0.05, exercisable for a period of one year from closing of the Offering.