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WINDERMERE, FL, Dec. 07, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire – Palayan Resources, Inc. (the “Company” or “PLYN”) (OTCMarkets: PLYN), a publicly traded, fully reporting emerging growth company, is pleased to announce that it has executed a Letter of Intent (the “Letter”) with Provenance Gold Corp. (“Provenance”) (CSE:PAU) (FSE:3PG) pertaining to a transaction involving certain mineral claims and rights in the State of Nevada. It is anticipated that the transaction will involve the formation of the joint venture following the successful completion of an exploration program to be managed and directed under the supervision of Provenance and funded by PLYN.
Provenance holds the rights to acquire 102 lode mineral claims, known as the Silver Bow Claims, and also controls one (1) patented mining claim, identified as the Blue Horse Claim (collectively, the “Project”), all of which are located in Nye County in the State of Nevada and are subject to certain net smelter returns royalty. The Project consists of approximately 2,024 acres.
The Project is a gold and silver property which contains small mines that historically produced high-grade silver and gold. The small mines were limited to local veins within larger mineralized structures and extended downward to a shallow water table where mining stopped. The Project was the site of small-scale intermittent mining activities from the early 1900s to 1964 that reportedly produced over 10,000 ounces of gold and 100,000 ounces of silver. The 102 claims include several key zones of mineralization.
Palayan CEO James Jenkins said: “We are excited about completing this transaction in the near future and are working feverishly to wrap up the due diligence phase as quickly as possible to make sure we comply with all legal and accounting matters related to this transaction.”
Provenance has already completed preliminary work on the Project consisting of geologic mapping, sampling, permitting, and logging of historical drilling. Based on the results of such work, Provenance has cited an initial drill program in an area with very strong surface gold and silver samples within an open-ended 300 feet wide mineralized zone that extends 1,500 feet northward before it goes under shallow gravel cover. An exposed breccia outcrop approximately 1,500 feet to the north of where the target area goes under gravel cover assayed 0.1 ounce per ton gold and 2 ounces of silver. Provenance has already received a Phase 1 work exploration proposal and is ready to commence work thereunder immediately. Following the successful completion of the Phase 1 exploration program, Palayan and Provenance are expected to jointly fund and develop the Project on an ownership basis of PLYN 49.5% and Provenance 50.5%, with Provenance serving as the project operator.
“This is a great opportunity to partner with Provenance on the Silver Bow project, a project that is located in the United States and is ready for immediate drilling,” continued Jenkins. Mr. Jenkins also stated, “This opportunity presents the potential to develop a world class gold and silver property much sooner than we had projected."
Per the terms of the Letter, the parties shall have until December 24, 2020 to complete due diligence and execute a definitive and final agreement.
Additional updates shall be provided as they become available.
About Palayan Resources, Inc.
Palayan Resources, Inc. is an emerging growth company. The Company is focused on operating, developing, exploring and acquiring high-quality projects worldwide. Headquartered in Windermere, FL, Palayan Resources is aiming to build a portfolio of companies that generate revenue and profitability.
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Phone: (407) 536-9422
Cautionary Note to Investors
The United States Securities and Exchange Commission ("SEC") limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce and that are compliant with SEC Industry Guide 7. Investors are cautioned not to assume than any part or all of the proposed project in the Silver Bow Property as contemplated in the letter agreement contains any mineral deposits that will ever be converted into resources or that any inferred mineral resource or measured and indicated resources exists or is economically or legally mineable. The proposed project does not contain any known proven or probable ore reserves or mineral resource compliant with SEC Industry Guide 7 reporting standards.
This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, securing necessary financing, the future of the U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations pertaining to the mining and exploration of mineral properties. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. The Company has no mineral resource or reserve estimate in any project at this time and may not have sufficient funding to thoroughly explore, drill or develop any mineral rights. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.