First Mexican Gold (FMG-V) July 17, '14 is updating its shareholders on activities at the Guadalupe property exploration site. Corex Gold (CGE-V), which property is contiguous to Guadalupe, announced on June 23, 2014, that it has entered into a letter of agreement with H. Morgan & Co. to provide financing of up to $1.65-million, and to provide operational and management services in regard to the company's Santana exploration property, with the intent of moving the company into production. Subsequently, First Mexican Gold has granted verbal permission to a third party to allow sampling of its Diana zone. The Diana zone is located two kilometres east of the Nicho zone of Corex and is interpreted to be up to 1,500 metres long, and on strike with a mineralized zone located on its northern face.
FMG is currently in the final stages of obtaining a grant from SGM (Mexican Ministry of Mines) to be used to drill the Diana zone, should an interested third party decide to independently confirm mineralization in this area.
The FMG claims are located along a trend of producing mines in the Sierra Madre Occidental, including the Mulatos mine of Alamos Gold Inc., the Dolores mine of Pan American Silver Corp. and the Ocampo mine of Minera Frisco SAB de CV. FMG is concurrently looking for financing to finance an engineering study of the viability of putting the Karen zone into production through an open-cut mining method and heap-leach recovery pad. The high-grade Karen mineralized zone occurs at or near surface and is amenable to an open-cut technique, allowing extraction of the rock and processing on a leach pad that would be situated on site. The initial overview of this possibility is encouraging. At the last annual general meeting, FMG was approved by shareholders to incorporate an advanced-notice procedure but has not implemented this.
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Corex Gold June 23, '14 - News Release
Corex Gold Corp. has entered into a letter agreement with H. Morgan & Co. to provide financing of up to $1.65-million, and to provide operational and management services in regard to the company's Santana property, with the intent of moving the company into production. The 100-per-cent-owned Santana property is located in the state of Sonora, Mexico.
The agreement calls for Morgan to provide Corex with financing in two tranches, with the first tranche of $400,000 to be advanced upon satisfactory completion of due diligence and agreement upon the final form of written agreements by Morgan. The second tranche of $1.25-million will be advanced following satisfactory completion of the initial work program and at the sole discretion of Morgan. Each financing tranche will be structured as a private placement with the first tranche consisting of four million units of the company to be issued at a purchase price of 10 cents per unit. Each unit will consist of one common share and one warrant exercisable into an additional common share for a period of two years at an exercise price of 15 cents per share.
The second tranche will consist of units to be issued at a price equal to the maximum allowable discount pursuant to the rules of the TSX Venture Exchange as of the date of issuance, each unit consisting of one common share and one warrant exercisable for a period of five years from the date of issuance. Each financing tranche is subject to the acceptance of the exchange. The agreement requires that the proceeds of the financing be used solely with respect to exploration and development of the Santana property, or maintenance payments on same.
The agreement also provides that Morgan will manage feasibility work on the property with the objective of advancing the property into commercial production. As such, Corex, pursuant to the terms of a written agreement, will appoint Morgan's corporate partner, Minas de Guachinango SA de CV, a Mexico corporation, as the manager over the activities to be conducted on the property. The management agreement will be terminated upon the earlier of the manager's resignation and termination of the management agreement or following the commencement of profitable commercial production at the property.
Pursuant to the terms of the agreement, Corex has additionally granted to Morgan a participation right with respect to any future equity or convertible debt financing while the management agreement is in force and a right of first refusal with respect to any financing required in order for the property to be made profitable after the completion of a phase 2 work program.
Craig Schneider, president and chief executive officer of Corex, stated: "Chester Millar, the founder of Glamis Gold, Eldorado Gold, Alamos Gold, and more recently Castle Gold (now Argonaut Gold), is an investment adviser to Morgan. As such, we are very pleased to have access to a person of Mr. Millar's experience and expertise involved with the operations of our Santana property en route to one day potentially being a production-based asset." |
