Mr. Ronald Coombes reports
PROVIDENCE GOLD MINES INC. INCREASES PRIVATE PLACEMENT
Further to the news release dated July 10, 2020, wherein Providence Gold Mines Inc. increased the private placement to $800,000, the company has received exchange approval to further increase the private placement up to $1.2-million. The company is expecting to announce the closure of the placement late next week.
The Company is currently seeking bids, (locally near the town of Sonora California), to grid auger drill the stockpile of historically milled material to further determine the volume of milled material which reportedly produced 225,000 ounces of gold until shut down due to a dispute in 1916.
The protocol is to assay at 2 meter intervals and once results are substantiated then to bulk sample the material to determine the best recovery methods
Brian Ray, MSc, PGeo, Head of Exploration and a qualified person (as defined under National Instrument 43-101) has read and approved the technical information contained in this news release.
The Company is also pleased to announce that the TSX Venture Exchange has accepted for filing a second amendment to the mining lease dated May 24, 2020, between Providence Gold Mines Inc. and Richard F. Ellers, trustee of the Ellers Family Trust (the owner), whereby an original agreement dated March 28, 2017, and amended April 12, 2019, will be further amended such that any and all past due lease payments and five additional one-year lease payments shall be paid in full by the issuance of one million common shares. An additional 200,000 common shares shall be issued upon commencement of a planned 3,900-metre drill program. If the company fails to complete the existing work commitments of $500,000 (Canadian) per year, the company may pay the owner $25,000 (U.S.) to keep the lease in good standing.
Incentive Stock Options
The Company has granted, subject to regulatory approvals, incentive stock options to purchase, in aggregate, 1,400,000 shares of its common stock. The options have been granted to directors, officers and employees of the Company and are granted under the Company's stock option plan and are exercisable at a price of $0.12 for a period of three years.
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