CANEX Metals Inc. Signs Letter of Intent to Acquire British Columbia Property Portfolio from Altius Resources Inc.
Calgary, Alberta (FSCwire) - CANEX Metals Inc. (“CANEX” or the “Company”) announces it
has signed a Letter of Intent granting the Company an option to acquire a 100% interest in 5 mineral exploration properties in
British Columbia from Altius Resources Inc. (“Altius”), a wholly held subsidiary of Altius Minerals Corp (TSX:ALS). The
portfolio of British Columbia projects ranges from early stage to more advanced properties, and comprises high and low
sulphidation epithermal targets, porphyry Cu-Au targets, and mesothermal gold targets. As part of the Agreement Altius
would contribute $100,000 toward a $500,000 financing and upon completion would hold roughly 12% of the outstanding shares of the
Company.
Dr. Shane Ebert President of the Company commented, “This deal immediately transforms CANEX into a multi project company with
a mix of gold-silver-copper exploration projects ranging from early stage to drill ready. The deal sees all CANEX cash
expenditures going directly toward exploration, with Altius benefiting from shares in CANEX and retained royalties on the
properties. The Altius team has had tremendous success in identifying and assembling high quality exploration projects
globally, and we are excited to have Altius as the Company’s largest shareholder and a direct financial contributor. Our 2018
exploration plans include drilling at the high-grade Gibson gold-silver project, advancing the 5 Altius projects with surface
exploration programs, and potentially trenching and geophysics.”
Terms of the Agreement
The agreement gives CANEX the exclusive right, at its election, to acquire a 100% interest in any or all of 5 British Columbia
mineral properties from Altius. Four of the five Altius projects are road accessible and all are located in west central
British Columbia. The 5 properties are named Ace, Echo, Fulton, Red, and Beal.
To earn a 100% interest in the Ace project CANEX must fund the next $100,000 in exploration expenditures and assume
the obligations of an underlying option agreement which includes payments of $150,000 in cash or shares and expenditures of
$555,000 over 5 years. Following the $100,000 expenditure CANEX would be required to issue 500,000 shares to Altius and a
milestone bonus of 1.5 million CANEX shares would be payable to Altius if the property achieves a compliant resource estimate
containing in excess of half a million gold equivalent ounces. Altius would retain royalty buy back rights from the
underlying agreement and would hold a 1.75% gross sales royalty on the property with any royalty payments in the underlying
agreement subtracted from the royalty due to Altius. Acquiring the Ace project will be conditional on satisfactory resolution of
a property access issue by August 15, 2018.
To earn a 100% interest in the Echo, Fulton, Beal, and Red properties CANEX must spend a minimum of $30,000 on
exploration within 15 months, and for each project issue to Altius 500,000 CANEX shares. Altius will retain a 1.75% gross
smelter royalty on each property, and would be entitled to a milestone bonus of 1.5 million CANEX shares for any property that
achieves a compliant resource estimate containing in excess of half a million gold equivalent ounces.
As the part of the deal Altius will contribute $100,000 to a minimum $500,000 CANEX financing. Terms of the
financing will be announced shortly. Following the financing it is expected that Altius would own roughly 12% of the
outstanding shares of CANEX.
A definitive agreement between CANEX and Altius will be completed shortly and will be subject to exchange approval by May 31,
2018. Shane Ebert through his private consulting company Vector Resources, has been involved in British Columbia project
generation activities for Altius. Vector Resources is entitled to 5% of the compensation due to Altius as part of this
Agreement.
The BC Properties
CANEX is in the process of constructing a new website and further details on the 5 exploration properties covered by this
agreement will be posted on our website at www.canexmetals.com once complete.
The Ace project is the most advanced of the 5 BC properties and is centered around a historic 1800 metre by 500 metre Cu-Ag-Au
in soil anomaly that has never been trenched or drilled. The property is prospective for Cu-Au porphyry mineralization and
related high-grade veins. Regional airborne magnetic surveys indicate a district scale fault cuts the area and controls the
alignment of 5 known mineral occurrences contained within the property. This fault zone is considered to have excellent
potential to host high grade silver and gold mineralization. Historic sampling along or near this fault zone has returned a
chip sample containing 578 grams per tonne (g/t) Ag over 10 metres. A grab sample of float from a covered area along the
southwest projection of the fault zone returned 17,952 g/t silver (577 ounces per tonne), providing an exceptional target for
immediate follow up. Altius has an exploration permit in place for Ace, and pending resolution of access issues, a trenching
program will be initiated this summer to test the large soil anomaly and the inferred high-grade structure.
The Echo project targets mesothermal (orogenic) gold mineralization within a till covered area which has seen very little
historic exploration. The claims are centered over a cluster of 90 to 99 percentile gold in lake sediment anomalies and are in
proximity to known placer gold occurrences. The claims cover 7.5 kilometres of strike length over an inferred covered shear
zone known to host alteration and lode gold mineralization 20 kilometres to the northwest. In 2017 Altius discovered a
low-level gold in soil anomaly over a 300 metre by 500 metre till covered area at Echo. This anomaly remains open for
expansion and most of the 7.5 kilometre strike length of the inferred shear zone remains unexplored. CANEX plans to
initiate soil sampling and mapping at Echo within the next few weeks.
The Fulton project contains a large airborne potassium, magnetic, and Th/K ratio anomaly identified in the 2017 Geoscience BC
Search Phase II geophysical survey, located within an area prospective for Cu-Au porphyry mineralization. In 2017 field
work by Altius identified porphyritic intrusions, alteration zones, and discovered a new zone of copper mineralization which
returned composite grab samples from outcrops of 0.48% Cu and 6.8 g/t Ag over 2 metres, and 0.15% Cu over 4 metres. Further
prospecting, mapping and sampling at Fulton is being planned.
The Red project contains a large high-level alteration system considered prospective for high sulphidation epithermal
mineralization, porphyry Cu-Au mineralization, and peripheral gold-silver base metal veins. A large gossanous alteration
zone is well exposed over an area 1.5 by 1 kilometres. Soil sampling by Altius in 2017 identified a low level Au-As-Te-Mo
soil anomaly overlapping the zone of alteration and this anomaly remains open for expansion. Historic exploration 1.5
kilometres southwest of the exposed alteration zone identified vein and stockwork mineralization within a creek bed. Historic
drilling from this zone returned an intersection of 6.93 g/t Au and 34.6 g/t Ag over 0.53 metres. Historic work has traced
this vein and stockwork zone over about 1000 metres of strike length. The next phase of exploration at Red is being
evaluated.
The Beal project is centered around a government survey sample that returned a 99.97 percentile gold in stream sediment
anomaly within a geologic and structural setting favorable for mesothermal (orogenic) gold mineralization. Grass roots
exploration by Altius has confirmed anomalous gold in stream silt samples, located patchy low level gold in soil samples, and has
narrowed the prospective source area for gold at the target. Further evaluation at Beal will include prospecting, mapping
and soil and rock sampling.
About CANEX Metals Inc.
Canex Metals is a Canadian based exploration company focused on acquiring and advancing high grade gold and silver deposits in
stable mining jurisdictions. Company Management has a proven track record of exploration success, with key personnel being
involved in discoveries in Mexico, Newfoundland, and British Columbia.
Dr. Shane Ebert P.Geo., is the Qualified Person for CANEX Metals and has approved the technical disclosure contained in this
news release.
“Shane Ebert”
Shane Ebert,
President/Director
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.
Except for the historical and present factual information contained herein, the matters set forth in this news release,
including words such as “expects”, “projects”, “plans”, “anticipates” and similar expressions, are forward-looking information
that represents management of CANEX Metals Inc. internal projections, expectations or beliefs concerning, among other things,
future operating results and various components thereof or the economic performance of CANEX. The projections, estimates and
beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may
cause CANEX’s actual performance and financial results in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among
other things, those described in CANEX’s filings with the Canadian securities authorities. Accordingly, holders of CANEX shares
and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted.
CANEX disclaims any responsibility to update these forward-looking statements.
To view the original release, please click here
Source: CANEX Metals Inc. (TSX Venture:CANX, OTC Bulletin Board:NOMNF, FWB:NJM1)
To follow CANEX Metals Inc. on your favorite social media platform or financial websites, please click on the icons below.
Maximum News Dissemination by FSCwire. https://www.fscwire.com
Copyright © 2018 FSCwire