GPM Metals Inc. Issues Correction

Rhea-AI Summary

On June 21, 2024, GPM Metals issued a correction regarding its Sale and Purchase Agreement with RTX, replacing the previous Farm-in Agreement. The correct contingent payment clause stipulates that RTX retains the right to be paid an amount equivalent to 1,000 tonnes of zinc and lead upon the definition of a JORC Code compliant resource exceeding 20 million tons at 8% combined lead and zinc, or upon a mining decision. This agreement, pending approval from Northern Territory mining authorities and the Northern Land Council, facilitates the transfer of exploration licenses from RTX to GPM's subsidiary, DPG Resources Australia. Additionally, two other licenses over adjacent ground will also be transferred. This aims to streamline access approvals and exploration activities.

Positive

• The new agreement replaces the old Farm-in Agreement, simplifying project structure.
• Transfer of exploration licenses to GPM's subsidiary, DPG Resources Australia, will enhance operational control.
• The agreement potentially grants GPM access to additional prospective zones for base metal mineralization.

Negative

• Contingent payment clause may result in future financial liability equivalent to 1,000 tonnes of zinc and lead.

Toronto, Ontario--(Newsfile Corp. - June 21, 2024) - GPM Metals Inc. (TSXV:GPM) ("GPM" or the "Company") wishes to correct the disclosure in its previous press release dated July 20, 2024 (the "Prior Release") with respect to its recently concluded a Sale and Purchase Agreement with RTX that will replace the current Farm-in Agreement.

The Prior Release contained an error with respect to a payment contingent upon the earlier of (i) the definition of a JORC Code compliant measured plus indicated Mineral Resource of greater than 20 million tons at greater than eight percent (8%) combined lead and zinc at the project, and (ii) a decision to mine being made in relation to the project.

The correct statement in relation to the contingent payment is;

RTX would also retain a right to be paid a further contingent amount equivalent to the future value of 1,000 tonnes of zinc and lead metal upon the earlier of (i) the definition of a JORC Code compliant measured plus indicated Mineral Resource of greater than 20 million tons at greater than eight percent (8%) combined lead and zinc at the project, and (ii) a decision to mine being made in relation to the project. This agreement is subject to approval from both the Northern Territory mining authority as well as the Northern Land Council. Both authorities have been informed and they have initiated internal processes to consider the approval of this agreement.

Pursuant to the Sale and Purchase Agreement, the existing granted exploration licences (ELs 385 and 24305) and exploration licence applications (ELAs 844, 5561, 30956, 30957) under the Farm-in Agreement will be transferred from RTX to DPG Resources Australia Pty Ltd ("DPG") (GPM's Australian subsidiary). In addition, two other exploration licence applications over adjacent ground in the Proterozoic McArthur Basin held by RTX (ELAs 843 and 26861) and considered prospective for base metal mineralization will also be transferred by RTX to DPG.

This agreement will provide a simpler structure for progressing access approvals, grant of the exploration licence applications and exploration activities at the project.

GPM is grateful to RTX for their support and assistance throughout this process and we look forward to a productive ongoing relationship.

GPM is continuing to progress exploration program plans for the existing granted tenements EL385 and EL24305, focused on generating and testing sediment hosted zinc-lead-silver mineralization targets.

CONTACT INFORMATION

For further information contact:
GPM Metals Inc.
Suite 1101 - 141 Adelaide Street West,
Toronto, Ontario M5H 3L5
Telephone : + 416 628-5904

Email: info@gpmmetals.com

Forward Looking Statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "might", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information and/or statements.  Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions of GPM which have been used to develop such statements and/or information but which may prove to be incorrect. Although GPM believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements as GPM can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: results from planned exploration and drilling activities; GPM's future plans for operational expenditures; the accuracy of the interpretations of exploration and drilling activity results; availability of financing to fund current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which GPM has property interests; the general continuance of current industry conditions; aboriginal matters; the timely receipt of any required regulatory approvals; the ability of GPM to obtain qualified staff, equipment and/or services in a timely and cost efficient manner; the ability of the operator of each project in which GPM has property interests to operate in a safe, efficient and/or effective manner and to fulfill its respective obligations and current plans; future commodity prices; currency, exchange and/or interest rates; and the regulatory framework regarding royalties, taxes and/or environmental matters in the jurisdictions in which GPM has property interests. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation: risks associated with the uncertainty of exploration results and estimates, currency fluctuations, the uncertainty of conducting operations under a foreign regime, exploration risk, the uncertainty of obtaining all applicable regulatory approvals, the availability of labour and/or equipment, the fluctuating prices of commodities, the availability of financing and GPM's dependence on its management personnel, other participants in the property areas and/or certain other risks detailed from time-to-time in GPM's public disclosure documents, (including, without limitation, those risks identified in this news release and GPM's current management's discussion and analysis). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities 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 and / or accuracy of this release

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213968

FAQ

What was the correction issued by GPM Metals on June 21, 2024?

GPM Metals corrected the contingent payment clause in their Sale and Purchase Agreement with RTX. The corrected statement involves a payment equivalent to 1,000 tonnes of zinc and lead upon the definition of a JORC Code compliant resource exceeding 20 million tons at 8% combined lead and zinc, or upon a mining decision.

How does the new agreement between GPM Metals and RTX impact GPMTF stock?

The new agreement simplifies the project structure and grants additional exploration licenses, which could positively impact GPMTF stock by enhancing operational control and exploration prospects.

What are the conditions for the contingent payment to RTX mentioned in GPM's June 21, 2024, press release?

The contingent payment to RTX is due upon the definition of a JORC Code compliant resource exceeding 20 million tons at 8% combined lead and zinc, or upon a mining decision.

Which exploration licenses are being transferred to GPM's subsidiary as per the June 21, 2024 press release?

Exploration licenses EL385, EL24305, and additional applications ELAs 844, 5561, 30956, and 30957 are being transferred to GPM's subsidiary, DPG Resources Australia.

What approvals are needed for the Sale and Purchase Agreement between GPM Metals and RTX?

The agreement requires approval from the Northern Territory mining authority and the Northern Land Council.