Cranbrook, British Columbia, (Newsfile Corp. – July 28, 2022) – DLP Resources Inc. (“DLP” or the “Company”) (TSXV:DLP) (OTCQB:DLPRF) announces the start of a 1800m-six hole diamond drill programme at the Hungry Creek, 711 copper target zone.
Hungry Creek – 711 Target Zone
The Hungry Creek property is comprised of 74 claims (Figure 1). The mineral claims cover just over 38,852.92 hectares. Geologically the property is hosted within the Mesoproterozoic Belt-Purcell basin and is being targeted for strata-bound Cu-Co-Ag analogous to other Belt-Purcell hosted deposits such as Sheep Creek, Spar Lake, Rock Creek, Montanore (Montana), and the Blackbird district (Idaho) – Figure 2.
The 711 Target zone at Hungry Creek will be the focus of the first six holes where very encouraging copper mineralization was reported from seven grab and two float samples (see DLP’s press release dated November 30, 2021). Copper up to 1.15% and anomalous silver of up to 3.51ppm together with anomalous cobalt (up to 117.6ppm) and barium (up to 4,274 ppm) were also reported (Figure 3).
Expenses incurred by the Company on Hungry Creek, a copper-cobalt project, may qualify for the 30% Critical Mineral Exploration Tax Credit (“CMETC”), as provided for in the Canadian federal budget of April 7, 2022. For more information on the CMETC, see the annex on tax measures proposed in the budget available at https://budget.gc.ca/2022/report-rapport/tm-mf-en.html.
Ian Gendall, President & CEO of DLP commented: “We are extremely pleased to have started the 1800m drill programme on the 711-copper target. Field evidence suggests we are dealing with an untested package of sediment hosted copper mineralization which extends both north and south over at least 11km. This first phase of drilling is planned to test the thickness and grade of copper mineralization at the 711 target.”
The Company is also pleased to announce that it intends to complete a non-brokered private placement (the “Private Placement”) of up to 2,000,000 flow-through common shares (each, a “FT Share”) at a price of $0.25 per FT Share for gross proceeds of up to $500,000.
The Company intends to pay finder’s fees in connection with the Private Placement to certain eligible finders in the form of: (i) a cash commission of 7% of the gross proceeds raised under the Private Placement from investors introduced to the Company by the finder; and (ii) the issuance of such number of non-transferable common share purchase warrants of the Company (the “Finder’s Warrants”) equal to 7% of the FT Shares issued under the Private Placement from investors introduced to the Company by the finder. Each Finder’s Warrant will entitle the holder thereof to acquire one common share of the Company for an exercise price of $0.25 per share for a period of 18 months from closing of the Private Placement.
The Company intends to use the proceeds from the Private Placement for drilling on its Hungry Creek Project.
The Private Placement will be made available to subscribers pursuant to the accredited investor and friends, family and business associate exemptions provided under sections 2.3(1) and 2.5(1) of National Instrument 45-106 Prospectus Exemptions.
Figure 1: DLP Project areas with Hungry Creek and Copper Creek properties shown.
Figure 2. Hungry Creek and Copper Creek Claims Shown within Belt Purcell Supergroup Outcrops and Comparative Stratigraphy for Sediment Hosted Copper Deposits in NW Montana and N Idaho.
Figure 3: The 711 Target Zone at Hungry Creek
Grant of Stock Options
The company has granted a Contractor 200,000 incentive stock options. The options will have a term of 5 years expiring July 27, 2027. The options shall vest over a 24 month period with one third vesting immediately, one third after 12 months and one third after 24 months. Each option will allow the holder to purchase one common share in the company at a price of $0.20 per share.
David L. Pighin, consulting geologist and co-founder of DLP Resources, is the qualified person of the Company as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Pighin has reviewed and approved the technical contents of this news release.
About DLP Resources Inc.
DLP Resources Inc. is a mineral exploration company operating in Southeastern British Columbia and Peru, exploring for Base Metals and Cobalt. DLP is listed on the TSX-V, trading symbol DLP and on the OTCQB, trading symbol DLPRF. Please refer to our web site www.dlpresourcesinc.com for additional information.
Not for distribution to U.S. news wire services or dissemination in the United States
FOR FURTHER INFORMATION PLEASE CONTACT:
DLP RESOURCES INC.
Ian Gendall, CEO & President
Jim Stypula, Executive Chairman
Robin Sudo, Chief Financial Officer and Corporate Secretary
Maxwell Reinhart, Investor Relations
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.
Cautionary Note Regarding Forward-Looking Information
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements, referred to herein as “forward‐looking statements”, are not historical facts, are made as of the date of this news release and include without limitation, statements regarding: future plans, estimates and forecasts of management with respect to drilling on the Hungry Creek-Copper Creek properties in SW British Columbia; the Company’s expectation that expenses incurred on the Hungry Creek project will qualify for the CMETC; the anticipated proceeds to be raised under the Private Placement; the use of any proceeds raised under the Private Placement; and finder’s fees to be paid in connection with the Private Placement.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things: the risk that drill results will not be as expected from the Company’s Hungry Creek-Copper Creek properties in SW British Columbia; delays in obtaining or failure to obtain required regulatory approvals for the Private Placement; market uncertainty; the inability of the Company to raise the anticipated proceeds under the Private Placement; and the risk that expenditures incurred on the Hungry Creek project will not qualify for the CMETC.
In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, that: the results of drilling on the Hungry Creek project will be as currently anticipated; the Company will obtain the required regulatory approvals for the Private Placement; the Company will be able to raise the anticipated proceeds under the Private Placement; the Company will use the proceeds of the Private Placement as currently anticipated; and the Company’s planned expenditures on the Hungry Creek project will qualify for the CMETC.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.