Vancouver, BC, March 8, 2017 – Parallel Mining Corp. (the “Company”) (TSX‑V: PAL) is pleased to announce the completion of the previously announced transaction with 0909189 B.C. LTD. (“0909 BC”) and the shareholders of 0909 BC. As a result of the transaction, the Company acquired 100% of 0909 BC, which in turn holds an option to acquire a 100% interest in exploration licences located in the Soum Province of Burkina Faso, West Africa known as the Garsay Property, subject to a 1% net smelter royalty in favour of the underlying owner.
The transaction was completed pursuant to a share exchange agreement with 0909 BC and the 0909 BC shareholders. Pursuant to the agreement, the Company acquired 100% of 0909 BC in exchange for 7,590,000 common shares of the Company issued to the 0909 BC Shareholders. Certain insiders of the Company received an aggregate of 1,290,000 shares of the Company in connection with the Agreement. Each issuance to an insider constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the TSX Venture Exchange. The Company is relying on an exemption available from the formal valuation requirements under Section 5.5(a) of MI 61-101 and an exemption available from minority approval requirements under Section 5.7(a) of MI 61-101 on the basis that the fair market value of the transactions with the insiders does not exceed 25% of the Company’s market capitalization.
The common shares issued pursuant to the Agreement are subject to a four-month hold period that expires on July 9, 2017.
For further information please contact:
President & Chief Executive Officer
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