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Group Ten Metals (TSX: PGE) Reorganizes and Focuses on PGM Projects in Yukon, Announces Reduction in Debt

on 3/2/2016
Group Ten Metals (TSX: PGE), with a focus on their PGM-Ni-Cu projects and high-grade gold, has just announced a significant reduction in their debt load as part of a larger corporate transition. Under the leadership of Michael Rowley, Founder, President and CEO, Group Ten Metals has assembled an extensive and strategic land position in an emerging world-class district for platinum group metals, including nickel and copper, in the southwest Yukon, while also maintaining their high-grade gold asset in northwest Ontario.



Michael Rowley, President and CEO of Group Ten Metals (TSX: PGE), took some time to update readers on the progress of the company. Mr. Rowley said, “I am a founder of the company. I have been with it since day one, about ten years ago, and I’m a major shareholder.” During the last year, the company has gone through some significant restructuring. Mr. Rowley said, “Group Ten Metals was reborn in mid-2014 when the Yukon suite of properties came along. We saw great opportunity in the Yukon assets as Wellgreen Platinum has proven the existence of world-class PGM-Ni-Cu deposits in the Kluane belt. Yet the area is underexplored for PGMs and no other company is active in the area. Wellgreen is projected to be one of the largest PGM producers in the world and it is a pro-mining and politically stable jurisdiction. It also happens to be right beside the Alaska Highway. In terms of geology, the area has both grade and scale as the Kluane Belt similarities with the world’s largest PGM-nickel producers in Russia; so we believe Wellgreen is just the beginning for the area. Since that time we have been repositioning the company around the Yukon assets and acquired the biggest land position in the belt, along strike with Wellgreen to the northwest and southeast, and with the correct geology, structure and geophysics throughout. We adjoin Wellgreen on three sides and have the strike extension of their deposit.”

The company has maintained its most advanced asset, the Drayton-Black Lake high-grade gold project in northwest Ontario, while strategically acquiring platinum, palladium, copper and nickel properties in depressed market conditions. Drayton-Black Lake is located 70 km east of Dryden in northwest Ontario. Group Ten has assembled a contiguous land position of over 79 square kilometers that includes over 25km of geologically active Archean greenstone strike on trend with known +1Moz high-grade gold deposits including the Rainy River deposit and numerous high-grade showings and records. Mr. Rowley said, “I’ve always liked this project, and with gold moving up I expect we can follow our neighbours Tamaka and Treasury and quickly drill some high-grade shoots.”



The restructuring brought a new technical team, which was recently complemented by the addition of Zimtu Capital to commence a marketing effort. Mr. Rowley said, “We have brought a lot of new people in, and just today announced the settlement of about $900,000 in debt which we will take off our books under very reasonable terms. That, and the renaming of the company that took place last year, are two essential pieces in our rebirth as a PGM nickel explorer focused on the southwest Yukon. There is a long-term vision there. The final piece of the puzzle has been the involvement of Zimtu Capital as we have lacked promotion and marketing. ”

Like many juniors, Group Ten is seeing challenges in the financial side of their business, though they have taken steps to deal with those. Mr. Rowley said, “We are low on cash, as many juniors are, however, with our recent debt settlement, we will be much more attractive to investors and able to raise money. We have about 22 million shares out at the time of this call and that is about to go up to 31 million shares, I believe, with the debt settlement. We are sitting at $0.025 cents in the market because we really haven’t made a marketing push yet.”



Rowley believes that with the debt reduction done the company can move forward with its vision to benefit from the current gold market in order to position itself for success in platinum, palladium, nickel and copper in the coming year. He said, “We will be announcing placements and we also have some assets to sell. That is a key part of our story: we have non-core assets that we expect to turn into cash and shares in the coming months.”

Mr. Rowley believes that investors will be interested in the company based on their land position and their timing. He said, “Investors should look at Group Ten because of our timing in the market in terms of where we are in our turn-around, and also timing in terms of the commodities we are after. We have taken advantage of distressed market conditions to acquire a fantastic strategic land position – the premier position in the belt - while also maintaining a hedge in the gold exploration business. ”

As part of the restructuring, the Board and Management team have seen changes, ones that Mr. Rowley believes will help the company move forward. He said, “We have a very well established team. I have more than twenty-five years’ experience and am on two other Boards. I have worked in mining my whole career. Our V-P Exploration brought a nickel mine through discovery and development and into production and our COO has a PhD. We have a second generation Yukon prospector who lives in the Yukon and had a lot to do with assembling the claims we have. He has excellent long-term relationships in the communities in the area, including First Nations. Our CFO and Secretary are both very experienced in the junior space.” This experience will assist the company in the near and long term in developing and executing their vision.



Mr. Rowley believes that the company is at an important crossroads. He said, “We have a tight structure as we complete our corporate transition, and we are well positioned in terms of our land packages and target commodities. As the promotional effort rolls and we get going we’ll raise money, promote results and divest of some non-core assets. It’s a very exciting time that follows a lot of effort by people close to the company. ”

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