Exgen Announces Sale of Empire Mine Project NSR for $2,750,000 Cash
08 Septiembre 2021 - 3:44PM
ExGen Resources Inc. (TSX.V: EXG; OTC: BXXRF)
(“
ExGen”, the “
Company”) is
pleased to announce the sale (the “
NSR Royalty
Sale”) of its wholly owned 2.5% NSR royalty on the Empire
Mine project in Custer County, Idaho, USA (the “
Empire Mine
Project”) to a private company purchaser (the
“
Purchaser”) for total cash consideration of
CDN$2,750,000 and potential further cash payments depending on the
exploration and development milestones achieved on the Empire Mine
Project, as outlined further below. ExGen continues to own
1,330,000 common shares of Phoenix Copper Ltd. and its 20% interest
in Konnex Resources, Inc. (“
Konnex”), which holds
the leases and claims to the Empire Mine Project. The NSR Royalty
Sale is not a “related party transaction” pursuant to Multilateral
Instrument MI 61-101, “Protection Of Minority Security Holders In
Special Transactions”, but is a Non-Arm’s Length Party transaction
pursuant to the policies of the TSX Venture Exchange (the
“
TSXV”) and is subject to TSXV acceptance.
The details of the cash and potential cash
consideration payable to ExGen in exchange for NSR Royalty Sale is
outlined below:
Scheduled Cash Payments Totaling
$2,750,000
- $500,000 within 10 days of the
closing of the NSR Royalty Sale;
- $500,000 on the earlier of: (i) 10
days of the listing of the Purchaser on a stock exchange in Canada
or the United States or the Purchaser’s shareholders receiving
shares of an entity listed on such an exchange; or (ii) 18 months
the closing of the NSR Royalty Sale; and
- $1,750,000 in cash payments made in
seven $250,000 cash payments, with the first $250,000 cash payment
made on January 15, 2023, and a further six $250,000 cash payments
made every three months after the last such payment.
100% of the Empire Mine Project Residual
Interest - Milestone Based Contingent Cash Payments
- $100,000 on completion of a NI
43-101 compliant Pre-Feasibility Study on the Empire Mine Project;
and
- on the date of filing a NI 43-101
compliant Feasibility Study, an additional $250,000 per each
100,000,000 lbs of copper reserves at the Empire Mine Project as
determined by such NI 43-101 compliant Feasibility Study;
- ExGen advises that there is
currently no Pre-Feasibility Study or Feasibility Study on the
Empire Mine Project and there is no guarantee that any
Pre-Feasibility Study or Feasibility Study will ever be produced
for the Empire Mine Project, and as a result, there is no guarantee
that the contingent cash payments outlined above will be paid as
set forth above, or at all.
Jason Riley Chairman and CEO of ExGen commented,
“The Empire Mine Project NSR Royalty Sale is a fantastic milestone
and transaction for ExGen as it provides for significant cash
payments of $2,750,000, with excellent upside if milestone payments
are achieved as well. This transaction demonstrates the Purchaser’s
belief in the Empire Mine Project, for which ExGen maintains its
20% interest even after the NSR Royalty Sale. We are very excited
about the future exploration and development of the Empire Mine
Project.”
QUALIFIED PERSON
Kieran Downes, Ph.D., P. Geo., a Qualified
Person as defined by National Instrument 43-101, has reviewed and
verified the technical information provided in this release.
ABOUT EXGEN RESOURCES INC.
ExGen, formerly Boxxer Gold Corp, is a project
accelerator that seeks to fund exploration and development of our
projects through joint ventures and partnership agreements. This
approach significantly reduces the technical and financial risks
for ExGen, while maintaining the upside exposure to new discoveries
and potential cash flow. The company intends to build a diverse
portfolio of projects across exploration stages and various
commodity groups. ExGen currently has 5 projects in Canada and the
US.
For more information on ExGen please contact
ExGen Resources Inc.
Jason
Tong Chief Financial Officer Email: jason@catapultgroup.ca |
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.
Forward-Looking Information:
This news release contains certain forward-looking information. All
statements included herein, other than statements of historical
fact, are forward-looking information and such information involves
various risks and uncertainties. There can be no assurance that
such information will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such information. In particular, this news release contains
forward-looking information in relation to: the NSR Royalty Sale,
including, the potential closing of the NSR Royalty Sale, the
acceptance of the TSX Venture Exchange of the NSR Royalty Sale, the
future cash payments to be made in consideration of the NSR Royalty
Sale, the milestone based contingent cash payments in respect of
the NSR Royalty Sale that may be received by ExGen only if certain
exploration and development milestones are met on the Empire Mine
Project; and the future exploration and development of the Empire
Mine Project. There can be no assurance that such information will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such information. There
can be no assurance that the development of the Empire Mine Project
will be completed, and if development is completed, that such
development will result in a producing mine. In the forward looking
information contained in this news release, ExGen has made numerous
assumptions, based upon practices and methodologies which are
consistent with the mineral industry. In addition, ExGen has
assumed: that it will obtain final TSX Venture Exchange acceptance
of the NSR Royalty Sale; the continued market acceptance of its
joint venture partnership model; the ability of ExGen and its
partners to raise future equity financing, if needed, at prices
acceptable to ExGen or its partners; ExGen's current and initial
understanding and analysis of the Empire Mine Project; the ability
of ExGen or third parties to discover viable exploration targets
and the results of exploration on the Empire Mine Project; the
ability of Phoenix to explore and develop the Empire Mine Project;
the cost of exploration, including sampling, drilling and assaying,
on the Empire Mine Project, the costs of developing the Empire Mine
Project and the costs and the ability of its partners to produce a
pre-feasibility study and feasibility study in compliance with NI
43-101; and ExGen's general and administrative costs remaining
sustainable. While, ExGen considers these assumptions to be
reasonable, these assumptions are inherently subject to significant
uncertainties and contingencies. Additionally, there are known and
unknown risk factors which could cause ExGen's observations, actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking information contained herein. Known
risk factors include, among others: the possibility that the
analytical results from the core sampling does not return
significant grades of copper, gold, silver, zinc, lead or any other
molybdenum by-products; uncertainties relating to interpretation of
drill results and the geology; continuity and grade of
mineralization; there is no certainty that the ongoing work
programs will result in significant or successful exploration of
the Empire Mine Project or development of the Empire Mine Project
into a producing mine; uncertainty as to the actual results of
exploration and development or operational activities; uncertainty
as to the availability and terms of future financing; uncertainty
as to timely availability of permits and other governmental
approvals; ExGen may not be able to comply with its ongoing
obligations regarding its properties; the early stage development
of ExGen and its projects, and in particular, the Empire Mine
Project; general business, economic, competitive, political and
social uncertainties; capital market conditions and market prices
for securities, junior market securities and mining exploration
company securities; commodity prices, in particular copper, gold,
silver, and zinc prices; competition; changes in project parameters
as plans continue to be refined; accidents and other risks inherent
in the mining industry; lack of insurance; delay or failure to
receive board or regulatory approvals; changes in legislation,
including environmental legislation, affecting ExGen; conclusions
of economic evaluations; and lack of qualified, skilled labour or
loss of key individuals. A description of additional risk factors
which may cause actual results to differ materially from
forward-looking information can be found in ExGen's disclosure
documents on the SEDAR website at www.sedar.com. Although ExGen has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on
forward-looking information. ExGen does not undertake to update any
forward-looking information except in accordance with applicable
securities laws.
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