News! GGX GOLD CORP TO ACQUIRE MOBILE PROCESSING PLANT
GGX Gold Corp. has entered into an asset purchase agreement and an option to purchase agreement with Munroe Materials Inc., a private Manitoba corporation.
"This technology will enable GGX to dramatically streamline its exploration process as it samples the numerous high-grade gold-bearing quartz veins on the Gold Drop property," said Barry Brown, president of GGX Gold.
Asset purchase agreement
Pursuant to the asset purchase agreement, the company will buy certain assets of Munroe. The assets to be acquired include a processing plant, equipment and related assets. The equipment consists of a proprietary mobile ore sampler involving a unique process for on-site collecting, reducing and concentrating minerals from host rock. This mobile platform enables the miner to perform bulk sample testing directly at the mine site or on a promising mineralized outcrop. The system can be modulated for speed and can process up to five tonnes of mineralized rock per hour. This process curtails the need for a tailings pond. All water is recycled.
According to Kenneth Munroe, director of Munroe Minerals:
"Munroe Materials is pleased to have arrived at an asset purchase agreement with GGX Gold for the sale of a mobile processing plant. I believe this is a strategic fit for both companies as our plant has been developed to operate on mineral properties having similar geological characteristics to GGX's Gold Drop property."
In consideration of the sale and transfer of the assets, GGX will pay Munroe a total of $250,000 in cash, of which $50,000 has been paid.
GGX intends to use the assets for exploration on its Gold Drop property to help in determining the economic potential of multiple quartz veins throughout the property. The intention of using this unit as an exploration tool in this manner will drastically reduce turnaround time and costs associated with traditional lab work. Once an area of interest is developed, then traditional assay approach will be implemented for verification and compliant results. There can be no assurance that economic resources will be discovered or developed at the Gold Drop property.
GGX expects to complete the purchase of the assets on or before the end of July, 2017. Further details of the assets will be provided when GGX completes such purchase.
Option agreement
Pursuant to the terms of the option agreement, GGX has the option for a period of 12 months to acquire all of the issued and outstanding shares of Munroe for $1-million payable in cash and/or common shares of GGX at GGX's sole discretion and subject to the policies of the TSX Venture Exchange.
The purchase price was determined by RWE Growth Partners Inc., an independent business valuator. If, during the option period, a bonafide offer is made exceeding the valuation price, GGX has a right of first refusal to match any other proposals Munroe may receive.
Completion of the acquisition of Munroe is subject to a number of standard conditions, including, but not limited to, no material adverse effect to the affairs, assets or financial condition of Munroe, and the acceptance by the exchange if required. There can be no assurance that the acquisition of the assets or Munroe will be completed as proposed or at all.
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