Orex Minerals (REX-V) Feb 23, '15 is pleased to announce that it has entered into a letter of intent (the "LOI") with Agnico Eagle Mines Limited (AEM-T) with respect to the development of Orex's Barsele Gold Project, located in Sweden.
Pursuant to the terms of the LOI, AEM will acquire an initial 55% interest in the Project on payment to Orex of US $10 million (US $6 million on closing of the transaction and US $2 million on each of the first and second anniversaries of closing of the transaction). As part of the transaction, AEM will commit to spend US $7 million on exploration over three years. AEM can earn an additional 15% interest by completing a pre-feasibility study on the Project. Orex will also be granted a 2% NSR, which may be terminated in exchange for a payment to Orex of US $5 million.
Completion of the transaction is subject to AEM's confirmatory due diligence, the execution of a definitive joint venture agreement, the approval of the TSX Venture Exchange and all other regulatory, corporate and security holder requirements.
The transaction is expected to close on or before April 1, 2015. Orex plans, after completion of the transaction, to continue with the spinout of the Barsele asset into a NewCo as previously announced on February 1, 2013.
Orex's President, Gary Cope says, "It is great to be partnered with a quality company like AEM to develop one of Scandinavia's best gold projects. We believe that this transaction shows the potential of this property and will serve as a strong catalyst for Orex moving forward."
ABOUT OREX MINERALS INC.
Orex Minerals Inc. (TSX-V: REX) is a Canadian-based junior exploration company comprised of highly qualified mining professionals. The Company has several current projects: the Barsele Gold Project in Sweden, the Los Crestones Gold-Silver Project in Sinaloa, Mexico, the Jumping Josephine Gold-Silver Project in British Columbia, and the Coneto Gold-Silver Project in Durango, Mexico, which is currently under option to Fresnillo plc.
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope
President
SOURCE Orex Minerals Inc.
 Orex Minerals Inc.
(604) 687-8566,
email info@orexminerals.com
website at www.orexminerals.com |
