February 28, 2017 (Vancouver, British Columbia): PNG Gold Corporation (the “Company” or “PNG“) (TSX-V: PGK) announces that it has entered into a letter of intent (“LOI”) for a Lease with Parkland Refining Limited (“Parkland“) for the portion of their property in Bowden, Alberta that is occupied by the existing processing plant, which includes access to existing utilities, roads, storm water and settlement pond systems, and storage tanks. The formal lease agreement will also provide PNG access to Parkland’s rail and truck handling facilities; and tank farm; providing the Company with both significant capital cost savings; as well as an expedited path to market by virtue of developing an existing industrial property and infrastructure.
The transactions contemplated by the LOI are subject to customary conditions, including completion of due diligence, receipt of all required third party approvals for the Lease and related matters and corporate approvals of each of Parkland and PNG.
Completion of this LOI is part of PNG’s ongoing commitment to the ReGenTM used motor oil re-refining technology license owned by the Company. As previously announced, PNG has engaged Stantec Engineering and WSP to perform preliminary front en d engineering and design (“pre-FEED“) studies. Those pre-FEED studies are expected to be received by the Company in early March. Concurrently, PNG is also preparing a comprehensive market analysis and economic review of the proposed re-refinery.
Greg Clarkes, Chief Executive Officer of PNG stated, “The signing of this LOI with Parkland, is a very major step in moving our Gen III, Group III re-refining project forward.”
On Behalf of the Board of PNG Gold Corporation
Chief Executive Officer
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.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of PNG Gold Corporation. These include, but are not limited to, the execution of the definitive Lease and ancillary agreements and other transaction documentation. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, except as required by applicable law.