News Release

11 Sep

Pancon Closes Fully Subscribed $3 Million Financing

Toronto, Ontario–(Newsfile Corp. – September 11, 2020) – Pancontinental Resources Corporation (TSXV: PUC) (“Pancon” or the “Company“) fully subscribed its previously announced concurrent brokered and non-brokered financing. A private placement brokered by Paradigm Capital Inc. (the “Agent“) issued 14,967,000 units (each, a “Unit“) of the Company at a price of $0.12 per Unit, for gross proceeds of $1,796,040 (the “Brokered Offering“). The Company issued a further 10,533,000 Units for aggregate gross proceeds of $1,263,960 through non-brokered efforts (the “Non-Brokered Offering“). Together, the Brokered Offering and Non-Brokered Offering had aggregate gross proceeds of $3,060,000 through the issuance of 25,500,000 Units (together, the “Offering“).

Each Unit consists of one common share in the capital of the Company (a “Common Share“) and one-half of one common share purchase warrant (each whole warrant a “Warrant“). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.18 for a period of two years following the Closing Date, subject to acceleration in certain circumstances.

Pancon President and CEO, Layton Croft, stated: “Pancon’s work to date at our flagship Brewer Gold Project and our surrounding Jefferson Gold Project has identified multiple strong geophysical anomalies and drill targets below the former shallow mined pits and to the northwest, west, southwest and south of the former mine. Funds from this financing will allow us to drill approximately 10,000 meters of core in our upcoming diamond drill program. Of the approximate 1,000 historic drill holes at Brewer, almost exclusively targeting shallow oxide gold mineralization, only 9 holes went deeper than 200 meters below surface. Our initial diamond drill program will test targets down to 600 meters below surface.”

As consideration for the services provided by the Agent in connection with the Brokered Offering, the Agent was paid a cash commission of 7% of the gross proceeds of the Brokered Offering, and was issued 1,047,690 non-transferable broker warrants (the “Broker Warrants“), representing 7% of the total number of Units sold pursuant to the Brokered Offering. Each Broker Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.12 for 24 months from the closing of the Offering.

In connection with the Non-Brokered Offering, the Company issued a total of 206,360 finder’s warrants (the “Finder Warrants”) and paid a cash commission of $24,763.20. Each Finder Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.12 for 24 months from the closing of the Offering.

The Common Shares and Warrants issued pursuant to the Offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The net proceeds from the Brokered Offering and Non-Brokered Offering will be primarily used for exploration and development, and general working capital purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Pancon

Pancon is a Canadian junior mining company focused on exploring the prolific and underexplored Carolina Slate Belt in the southeastern US. In January 2020, Pancon won the exclusive right to explore the former Brewer Gold Mine in Chesterfield County, South Carolina. Between 1987-1995, Brewer produced 178,000 ounces of oxide gold from open pits that extended to 50 meter depths, where copper and gold-rich sulphides were exposed but could not be processed by the oxide heap leach processing facility. Brewer is a high sulphidation system driven by a sub-volcanic intrusive as indicated by: widely known prospective geology, including diatreme breccias; associated high sulphidation alteration; gold and copper mineralization; and geophysics (Schmidt, R.G., 1978, The Potential for Porphyry Copper-Molybdenum Deposits in the Eastern United States, U.S. Geological Survey). Pancon’s 100%-owned Jefferson Gold Project nearly completely surrounds the former Brewer Gold Mine. Both Jefferson (1,00 acres) and Brewer (1,500 acres) are located 12 km along trend northeast from the producing Haile Gold Mine, which produced 146,100 ounces of gold in 2019. In addition, Pancon has four nickel-copper-cobalt exploration projects in Northern Ontario, surrounding or near producing or former mines in proven and safe mining districts.

The Company cautions that the mineralization at the former Brewer Gold Mine is not necessarily indicative of the mineralization that may be identified on the Company’s ongoing and upcoming exploration work.

For further information, please contact:

Layton Croft, President & CEO or Jeanny So, Manager, External Relations
T: +1.647.202.0994

For additional information please visit our new website at and our Twitter feed:@PanconResources.

Neither 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.

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company’s management’s discussion and analysis as filed under the Company’s profile at Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.

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