NR- MXI's version is even better!!!!It is so good MXI is actually going to be the operator. Quite an unbelievable level of confidence shown in MXI by the folk at IAMGOLD....C.Gert
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Merrex Gold options 50% of Siribaya to Iamgold
2008-12-23 09:06 ET - News Release
Mr. Greg Isenor reports
MERREX INCREASES OWNERSHIP OF SIRIBAYA TO 100% AND CLOSES $12,000,000 OPTION AND PRIVATE PLACEMENT WITH IAMGOLD
Merrex Gold Inc. has closed its private placement and option agreement with Iamgold Corp. for 50 per cent of Merrex's Siribaya gold project in Mali, West Africa.
Commentary
"We are pleased to have increased our control of Siribaya to 100 per cent and to have closed our agreement with Iamgold," said Merrex president, Gregory Isenor. "As previously announced, as our Siribaya gold project developed into an advanced exploration project, Iamgold was at the top of our list of potential partners. Iamgold is making a financial investment in Siribaya which, coupled with Iamgold's exceptional gold exploration technical expertise, means that our Siribaya gold project will continue to advance in spite of the difficult financial times facing junior exploration companies. We expect that Iamgold will be a terrific partner and we are looking forward to working with them."
Total $10.50-million option for 50 per cent of Siribaya
Merrex has agreed to option to Iamgold up to a 50-per-cent interest in Merrex's wholly owned Siribaya gold project. The option agreement with Iamgold provides that Iamgold may incur up to $10.5-million over four years to earn up to a 50-per-cent interest in Siribaya.
The option agreement provides that Iamgold will incur exploration expenditures of $3.0-million in the first year and expenditures totalling not less than $2.5-million in each of the three succeeding years to earn its 50-per-cent interest. The interest to be earned will vest 30 per cent after expenditures of $8.0-million and a further 20 per cent after the final expenditure of $2.5-million.
The option agreement also provides that Merrex will be the initial project operator. After two years, or exploration expenditures of $5.5-million, Iamgold can elect to be the project operator. The project exploration programs will be determined by a joint management committee with equal representation, subject to final program approval by Iamgold.
The management committee will meet early in the new year to finalize the 2009 exploration program. The 2009 exploration program will begin as soon thereafter as is practicable under the direction of the project operator.
Total $1.5-million private placement
Merrex has concluded a private placement with Iamgold pursuant to which Iamgold subscribed for 4,285,714 units at 35 cents per unit, for net proceeds of $1.5-million. Each unit comprises one share and one 12-month share purchase warrant exercisable at 45 cents per share. The units are subject to a four-month investment hold period.
Acquisition of 5-per-cent-free-carried-interest royalty
As part of its option agreement with Iamgold, Merrex acquired an outstanding 5-per-cent-free-carried-interest royalty from Touba Mining SARL for two million common shares at a deemed issue price of 25 cents per share.
This acquisition increased Merrex's control of Siribaya to 100 per cent. The project is subject to a carried production royalty of 10 per cent to the Mali government, an optional 10-per-cent participating interest to the Mali government and a 5-per-cent net profit production royalty to Touba Mining SARL.
Merrex's principal projects are its Siribaya gold project, an advanced exploration project in Mali (West Africa) and its Jubilee zinc deposit in Cape Breton, N.S.
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