CALGARY, AB--(Marketwired - May 21, 2015) -
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ExGen Resources Inc. (TSX VENTURE: EXG) (OTC PINK: BXXRF) ("ExGen") is pleased to announce today that, together with Konnex Resources, Inc. ("Konnex") a wholly owned subsidiary of ExGen, it has entered into a Letter of Intent (the "LOI") with Phoenix Global Mining Ltd, a private British Virgin Islands based mining company focused on base metals development ("Phoenix") to earn an 80% interest in the Empire Mine Project.
The LOI allows Phoenix to acquire 80% of Konnex, ExGen's subsidiary that holds the leases to the Empire Mine Project, on the following headline terms:
- ExGen to retain a 20% carried interest until commencement of mine construction
- ExGen to be granted a 2.5% net smelter returns royalty for all metals on the Empire Mine Project (the "NSR")
- ExGen to be issued 10,000,000 common shares of Phoenix
- Phoenix to fund a minimum of US $1,000,000 within 18 months of signing the definitive agreement
- Phoenix to fund all Empire Mine Project property maintenance and sustaining costs of Konnex
- 30 mile area of interest applies to both ExGen's 20% carried interest and our 2.5% NSR
The 30 mile area of interest was structured to provide ExGen with the upside exposure to any potential regional exploration success on the Empire Mine Project.
The LOI is subject to several conditions being met, signing a definitive option and shareholders agreement and TSX Venture Exchange approval.
Mr. Jason Riley, CEO of ExGen commented: "We are pleased to have such an experienced group like Phoenix working with ExGen to put the Empire Mine back into production. This deal is a watershed event for ExGen as it provides the Company with a potential path to cash flow and significantly validates our joint venture and royalty business model."
The Phoenix team has previously built two companies from development through to production, Nelson Gold in Tajikistan, an 80,000 oz/annum gold producer (source: Nelson Gold financial statements and Northern Miner 8/31/98) and Oxus Gold's Amantaytau Goldfields in Uzbekistan, which produced more than half a million ounces of gold and almost 2.5 million ounces of silver in its first 6 years of production (source: Oxus Gold plc June 30, 2007 financial statements). Its principals have practical hands-on experience in precious and base metals exploration and mining, as well as being successful in project generative work, globally sourcing new projects for exploration and development for mid tier and major copper, gold, and iron ore producers.
Phoenix Chairman, Mr. Roger Turner, has an extensive mining career spanning over 40 years, including running multiple TSX and AIM listed companies and mining for copper in Granisle BC, Hudbay Minerals in Manitoba, Falconbridge in Uganda and for Rio Tinto Technical Services. Mr. Turner commented, "We are excited to be taking on the development of the Empire Mine in Idaho and working with the local community to build a wealth-creating future for all stakeholders. Our next steps will be to complete a NI43-101 Resource Calculation and pending the results, then proceeding with a Preliminary Economic Assessment Report."
About ExGen Resources Inc.
ExGen, formerly Boxxer Gold Corp, is a project incubator with a strategy to aggregate projects during the current market downturn and then fund exploration through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The company intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.
For more information on ExGen please visit our website at http://exgresources.com or contact ExGen Resources Inc.
Neither the 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.
Forward-Looking Information: This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to ExGen's Letter of Intent (LOI) on the Empire Mine project. There can be no assurances that the LOI will result in the conclusion of a joint venture agreement or any other transaction on the Empire Mine Project or any of the Company's other properties. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed the continued market acceptance of its joint venture partnership model. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the LOI will lead to the formation of a joint venture with Phoenix; uncertainties relating to interpretation of drill results and the geology; continuity and grade of mineralization; and uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties. A description of additional assumptions and risk factors used to develop such forward-looking information that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR website at www.sedar.com. Although ExGen has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.