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TSX-V: JLR
VANCOUVER, BC, Oct. 14, 2020 /CNW/ - JIULIAN RESOURCES
INC. (TSXV: JLR) ("Jiulian" or the
"Company") is pleased to announce that it has completed the
previously announced (see news releases of July 30, 2020 and September 3, 2020) acquisition of an option to
acquire the Pedra Branca Project in Brazil (the "Project") pursuant to
the terms of an option agreement (the "Option Agreement")
with Jaguar Mining Inc. (the "Fundamental Acquisition"). The
TSX Venture Exchange (the "Exchange") has accepted the
documentation filed concerning the Fundamental Acquisition and
approved the corresponding private placement (the "Concurrent
Financing") of units of the Company (the "Units"). It is
anticipated that Jiulian's common shares (the "Common
Shares") will resume trading on or about October 19, 2020.
As previously announced, pursuant to the terms of the Option
Agreement, the Company has been granted an option to acquire up to
a 100% interest in the Project by spending US$1 million in exploration expenses to earn a
75% interest which can be increased to a 100% interest by
delivering a National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101") compliant
technical report on the Project, subject to certain underlying
royalties.
A technical report (the "Report") prepared in accordance
with the requirements of NI 43-101 and entitled "Technical
Report, Geology, Mineralization and Exploration of the Pedra Branca
Gold Project." authored by Brett R Marsh, CPG and
Jean-Marc Lopez, FAusIMM, has been
accepted by the Exchange and will be filed under the Company's
profile on the SEDAR website at www.sedar.com.
The Report establishes the Project as a property of merit and
recommends an exploratory drill program. The Company's management
have identified and are in the process of engaging a contractor to
complete the first phase of drilling on the Project. All required
permits to execute the exploration program have been secured by the
Company.
Additionally, the Company has completed the Concurrent Financing
and issued an aggregate of 17,500,000 Units at a price of
$0.10 per Unit for aggregate gross
proceeds of $1,750,000.
Each Unit consists of one Common Share and one-half of one
Common Share purchase warrant (each whole warrant a
"Warrant"). Each Warrant entitles the holder to acquire one
additional Common Share at a price of $0.15 per share until October 8, 2022, subject to an accelerated expiry
in certain circumstances. In the event the closing trading
price of the Company's shares is greater than $0.25 per share for a period of 10 consecutive
trading days (the "Acceleration Event") the Company will
give notice to the Warrant holders of the Acceleration Event and
the Warrants will expire 30 days thereafter.
In connection with the Concurrent Financing, the Company paid to
eligible finders cash fees totaling $67,625 and issued an aggregate of 676,250
finders warrants (the "Finders Warrants"). Each Finder
Warrant entitles the holder to acquire one Common Share at a price
of $0.15 until October 8, 2022, subject to the Acceleration
Event.
All securities issued under the Concurrent Financing are subject
to a hold period of four months and a day under applicable
securities laws, which hold period will expire on February 9, 2021.
The Company anticipates that the net proceeds of the Concurrent
Financing will be utilized to complete the Fundamental Acquisition
and to fund the required US$1M
earn-in expenditures and related operating costs in relation to the
development of the Project.
The Company completed a portion of the Concurrent Financing
pursuant to the exemption as set out in BC Instrument 45-536
-Exemption from prospectus requirement for Certain Distributions
through an Investment Dealer.
About Jiulian
Jiulian is an exploration company engaged in acquiring and
advancing prospective and under-explored gold properties both in
Canada and internationally. The
Company's current portfolio includes the wholly-owned, Bigg Kidd
property, located near Aspen Grove, BC. Jiulian Resources is listed
on the Exchange under the symbol "JLR".
ON BEHALF OF THE BOARD
Douglas Meirelles, President and
CEO
Cautionary Note Regarding Forward-Looking Information
This news release contains statements that constitute
"forward-looking Information", as such term is used in
applicable Canadian securities laws. Such forward-looking
information involves known and unknown risks, uncertainties and
other factors that may cause the Company's actual results,
performance or achievements, or developments in the industry to
differ materially from the anticipated results, performance or
achievements expressed or implied by such forward-looking
information. Forward-looking information includes statements that
are not historical facts and are generally, but not always,
identified by the words "expects," "plans," "anticipates,"
"believes," "intends," "estimates," "projects," "potential" and
similar expressions, or that events or conditions "will," "would,"
"may," "could" or "should" occur.
Although the Company believes the forward-looking information
contained in this news release is reasonable based on information
available on the date hereof, by its nature forward-looking
information involves assumptions and known and unknown risks,
uncertainties and other factors which may cause our actual results,
level of activity, performance or achievements, or other future
events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. There can be no assurance that
the Fundamental Acquisition will be completed as proposed or at
all.
Examples of such assumptions, risks and uncertainties include,
without limitation, assumptions, risks and uncertainties associated
with general economic conditions; the Covid-19 pandemic; adverse
industry events; the receipt of required regulatory approvals and
the timing of such approvals; that the Company maintains good
relationships with the communities in which it operates or proposes
to operate, future legislative and regulatory developments in the
mining sector; the Company's ability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favorable terms; mining
industry and markets in Canada and
generally; the ability of the Company to implement its business
strategies; competition; the risk that any of the assumptions prove
not to be valid or reliable, which could result in delays, or
cessation in planned work, risks associated with the interpretation
of data, the geology, grade and continuity of mineral deposits, the
possibility that results will not be consistent with the Company's
expectations, as well as other assumptions risks and uncertainties
applicable to mineral exploration and development activities and to
the Company, including as set forth in the Company's public
disclosure documents filed on the SEDAR website at
www.sedar.com.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS
RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE
OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER
SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON
FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO,
IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR
TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
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.
SOURCE Jiulian Resources Inc.