KELOWNA, BRITISH COLUMBIA--(Marketwired - April 28, 2014) - PAPUAN PRECIOUS METALS CORP. (the "Company") (TSX VENTURE:PAU) (OTCQX:PAUFF) is pleased to announce that it has entered into a non-binding Letter of Intent with a Colorado licensed dispensary/cultivation facility to conduct a due diligence review of its Colorado operations. The Company has agreed to immediately place $100,000 in escrow to conduct the due diligence review of the business and has the exclusive right to acquire the business, subject to the successful outcome of the review. The Company may exercise its right to acquire the business upon completion of formal documentation to acquire the assets of the business for cash consideration of US $1,250,000.
The Colorado facility currently grows and sells medical marijuana to patients within the State of Colorado and looks to use the resources to be provided by the Company to expand its cultivation facilities to meet the current demand for its product, and to expand into the retail (recreational) market made possible due to recent Colorado legislation, which allows the sale of up to 1 ounce to Colorado residents over the age of 21, and 1/4 ounce to out-of-state residents over the age of 21.
Dev Randhawa, Chairman and CEO of Papuan Precious Metals, commented,
"This is a superb opportunity to enter a positive cash flow business in a rapidly emerging agricultural sector. The potential upside for our shareholders is excellent."
The Company will retain its mineral resource prospects in Papuan New Guinea and is considering a plan of arrangement to spin-out the Company's assets into two separate entities.
ON BEHALF OF THE BOARD
Dev Randhawa, Chairman and CEO
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