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PMX.V (ProAm Explorations Corp) Due Diligence Report
Common Shares: 15,283,936 (as per last MD&A)
Options: 1,000,000 exercisable at $0.05, Expiring May 2019
Insider Holdings: 9,717,721 or 63.6% (as per last information circular report)
*Note* - A deal to sell 71% of Samuels lake property for $50,000 and 200,000 CNC.V shares was closed shortly after this quarter ended. The company posted a small profit for the quarter from oil revenue which should have gone up after September since oil prices have jumped since then. PMX has quite the portfolio of oil and gas properties, see detailed information below.
Most Recent Financials (does not include deal after quarter ended)
Marketable Securities: $824
Perpaid Expenses: $21
Accounts Receivable: $9,298
Exploration Assets: $2
Property & Equipment: $534,121
Total Assets: $548,121
Accounts Payable: $47,524
Due to related parties: $45,309
Asset Retirement Obligation: $15,704
Total Liabilities: $108,537
Sales for 3 months and 9 months
3 Months(Ending September 30th with $40 oil)
Oil Sales: $13,477
Net Income: $2,257 ($4,882 with foreign exchange gain, see SEDAR)
9 Months(Ending September 30th with $30-40 oil avg)
Oil Sales: $24,270
Net Loss: -$6,911 (-$13,463, with foreign exchange loss, see SEDAR)
Oil and Natural gas and Mineral Properties
Samuel Lake Project
The Samuel Lake Project is located approximately 55km west of the town of Atikokan, Ontario. Access to the property is via the Lac LA Croix road along the South Pipestone River, which intersects highway 11 approximately 37 km west of Atikokan. The road services the Lac La Croix First Nations band year round and is well maintained. The Samuels Lake intrusions is one of a series of ultramafic intrusions into the quetico sediments in Northwestern Ontario and is completely encompassed by five mining claims. Please be advised this property farmed out to Canyon Copper Ltd as per the company’s news release, dated September 27th 2016.
Oil and Natural Gas Production and Exploration
Indiana County, Pennsylvania
OSEC Petroleum Inc, a wholly owned subsidiary, has a 100% working interest – 75% net revenue interest in 42 wells and a 50% working interest – 37.5% net revenue interest in an additional well in this Appalachian natural gas field in Indiana County, Pennsylvania. These wells have been shut-in since late 2014 due to pipelines issues.
The Company has a 12.5% working interest in two wells in Logan County Arkansas
The Company has a 12.5% working interest in two wells
The Company has two producing natural gas wells
The Company has a 5% working interest in a 5,600 acre land package within the High Allegheny Mountain Section of the Eastern Overthrust Belt. Given current price conditions, no further work has been done or contemplated on this acreage.
Okotoks, Alberta, Canada
Two wells, which are currently on production, are referred to as Okotoks 5-15-22-28W4 and Okotoks 6-15-22-28W4. The spacing units allow for two additional wells which await a better market environment.
Most recent news:
Canyon Copper, ProAm close Samuels Lake property option
2016-10-19 08:43 MT - News Release
See News Release (C-CNC) Canyon Copper Corp (2)
Mr. Benjamin Ainsworth of Canyon Copper reports
CANYON CLOSES OPTION AGREEMENT TO ACQUIRE SAMUELS LAKE PROPERTY
Canyon Copper Corp. has closed the option agreement with ProAm Explorations Corp. to earn a 71-per-cent interest in the Samuels Lake property by paying $50,000 and issuing 200,000 common shares to ProAm. The future obligations under the option agreement are set forth in Canyon's news release dated Sept. 27, 2016.
Samuels Lake is located in the Rainy River district of Ontario, about 56 kilometres west-southwest of Atikokan, a former mining centre that is 200 kilometres west of the port of Thunder Bay. The claim block covers a land area of 595.63 hectares (1,472 acres) with five mineral claims (36 units). This coverage encompasses all of the areas of the Samuels Lake intrusion.
The property is host to nickel, copper, cobalt and platinum group elements. Ben Ainsworth, president and chief executive officer of Canyon, stated: "The advantage of having accumulations of nickel-copper sulphides and the potential for cobalt as a byproduct means Samuels Lake is an attractive exploration target for Canyon. Cobalt is an important component of lithium-ion batteries electrode materials."
Summary of historical work
The property is an advanced exploration project, having had two significant work campaigns on it. Both campaigns lead to recommendations for further work, with geophysical targets for drilling. The first campaign was in 1998 to 2001, which started from a joint venture agreement between StarCore Resources Ltd. and ProAm Explorations. The program included property-scale geophysical surveys, together with prospecting and trenching of the discovery area. This was followed up by a drill program of 12 NQ drill holes for 2,748 metres to test some of the electromagnetic and magnetic anomalies identified by the surface geophysical surveys.
Drill hole SM 99-3, one of the early drill holes attempted, intersected 45.74 metres of 0.82 per cent copper, 0.64 per cent nickel, with 0.8 gram per tonne platinum plus palladium plus gold and up to 0.08 per cent cobalt. This mineralization was associated with wehrlite alteration, which has a high magnetic susceptibility and can also present magnetic anomalies. Six subsequent holes were used to carry out a downhole Crone pulse electromagnetic survey, which identified three conductive targets for further testing.
The second work program was completed in 2007 and 2008 by Teck/Cominco, which optioned the property from ProAm. Further ground geophysical surveys, UTEM and ground magnetics followed by a seven-diamond-drill-hole program, which intersected interesting nickel, copper and cobalt mineralization, including:
Hole SL 08-13: 0.39 per cent nickel, 0.85 per cent copper and 0.075 per cent cobalt over 14.3 metres from 234.7 metres to 249 metres; Hole SL 08-14: 0.21 per cent nickel, 0.30 per cent copper and 0.03 per cent cobalt over 33.5 metres from 167 metres to 200.5 metres; Hole SL 08-15: 0.23 per cent nickel, 0.52 per cent copper and 0.034 per cent cobalt over 15.2 metres from 107.4 metres to 122.6 metres; Including 0.57 per cent nickel, 1.299 per cent copper and 0.066 per cent cobalt over 3.1 metres from 107.4 metres to 110.5 metres. The principal host rocks for the intrusions that host the sulphide mineralization discovered at Samuels Lake are the metasedimentary rocks of the Quetico belt of rocks. Bodies of early mafic and ultramafic intrusions are the host rocks for this style of sulphide mineralization, which intrude the principal host rocks. As these intrusions cool, they may go through a process of settling out crystals, solidifying in the magma chamber, and forming layered reefs or pods of sulphides that may contain concentrations of copper, nickel, cobalt and platinum group elements.
Activity in the area focuses on the mine of North American Palladium Ltd. at Lac des Iles, 180 kilometres to the northeast. Lac des Iles is regarded by many as a similar type of deposit to Samuels Lake. North American Palladium and several junior exploration companies are currently and actively exploring for copper, nickel, platinum group elements and cobalt in the area between Lac des Iles and Samuels Lake.
Proposed exploration program
The first priority is to rework all of the Teck/Cominco and ProAm drill hole data to position the holes in a 3-D plot of their relative positions. A review of drill core will also be undertaken to assure that all the most prospective sections have been assayed. These activities on the earlier data sets will allow Canyon with targeting extensions of the higher-grade copper-nickel mineralization with associated cobalt co-product and platinum group elements. From these targets, Canyon will plan a three-to-five-hole drill program in early 2017, subject to obtaining sufficient financing.
Benjamin Ainsworth, PEng (British Columbia), licence No. 8648, chief executive officer of Canyon, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the contents of this news release.
We seek Safe Harbor.
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