Pancontinental Resources Corporation (Pancon) (TSX-V: PUC) has signed a Memorandum of Understanding (MOU), effective October 1, 2018, with the Flying Post First Nation (FPFN) in Northern Ontario. The FPFN-Pancon MOU provides a mutually beneficial framework for cooperation on the company’s three battery metals exploration projects, located 65 km northwest of Timmins: the Montcalm Project, the Gambler Project, and the Nova Project.

Murray Ray, Chief of Flying Post First Nation, stated, “Flying Post is pleased with the signing. The agreement outlines a process for mutual engagement throughout the exploration phase. Flying Post believes that exploration activities should be done in a manner that is respectful of traditional and treaty rights and the environment; and provide employment and business opportunities. The signing of this MOU is a promising first step in establishing a meaningful relationship with Pancon.”

Layton Croft, Pancon President and CEO, said, “We look forward to a productive, long-term relationship with the Flying Post First Nation as we advance our Montcalm, Gambler and Nova projects near Timmins. This MOU is a tangible example of Pancon’s Community Relations Policy, which affirms our Company’s belief that minerals exploration and mining – in addition to creating value for shareholders – can and should be a positive catalyst for environmental stewardship, economic development, and social responsibility. We conduct our business activities in pursuit of these outcomes, and to create shared value with First Nations, host communities and other stakeholder groups.”

The objectives of the FPFN-Pancon MOU are:

• To establish a mutually beneficial, cooperative and productive relationship through which Pancon recognizes and agrees to respect the aboriginal rights and treaty rights of FPFN while engaged in the exploration activities and operation of the project;
• To provide a process through which Pancon can consult with and accommodate the interests of the FPFN as outlined herein with a view to reconciling any competing interests at stake;
• To establish a relationship through which the FPFN can identify opportunities for its businesses and citizens to participate in Pancon’s exploration activities and operations;
• To provide Pancon with evidence for its stakeholders and the Ontario Ministry of Energy, Northern Development and Mines that FPFN and Pancon intend to work together in a spirit of cooperation for mutual benefit as well as social, ecological, cultural and economic well-being;
• To set out the objectives, process and topics for negotiations of an Impact Benefit Agreement between FPFN and Pancon; and
• To come to a negotiated settlement of financial compensation for exploration activities.

The MOU emphasizes the prioritization of business opportunities, employment and training opportunities for FPFN businesses and individuals. Pancon will provide capacity funding to compensate for impacts caused by on-the-ground exploration activities. Pancon will grant 50,000 options to FPFN at an exercise price of $0.06, subject to approval of the TSX Venture Exchange, with all of the options to vest on the approval of the TSX Venture Exchange. Pancon will also grant 50,000 shares to FPFN, subject to approval of the TSX Venture Exchange. The MOU also describes the process of negotiating and implementing a subsequent Impact Benefits Agreement (IBA), which would take effect once any of the three Projects has completed a Feasibility Study.