Jun 3 2015
Sphinx Resources Ltd. ("Sphinx" or the "Corporation") is pleased to announce the execution of an arm's length property purchase agreement (the "Agreement") with Royal Nickel Corporation ("RNC") for the purchase of 100% of the Marbridge nickel-copper mine project ("Marbridge"). This project comprises eight (8) claims and two (2) mining concessions for a total surface area of about 5.8 km2 and is located within the municipality of La Motte just east of the Corporation's Preissac project. Access to Marbridge is very good, and all essential infrastructure is available locally.
Under the terms of the Agreement, Sphinx will acquire 100% of RNC's interest in Marbridge by issuing 2,000,000 common shares to RNC. These shares have a deemed price per share of $ 0.035 and will be subject to a four month hold period. The Agreement is subject to the approval of the TSX Venture Exchange and other customary closing conditions. RNC will also receive a 2% net smelter return royalty ("NSR") on the Marbridge mining concessions. Sphinx has the right and option to purchase the full 2% NSR referred above for $2,000,000. There are neither cash payments nor exploration expenditure commitments involved in this transaction. The eight (8) mining claims remain subject to a 2% NSR in favour of Jefmar Inc. (the "Jefmar Royalty"). Sphinx has the right and option, at its sole discretion, to purchase 50% of the Jefmar Royalty for $1,000,000.
The Marbridge underground nickel-copper mine produced 774,227 tonnes of ore grading 2.28% nickel and 0.1% copper between 1962 and 1968, with four (4) deposits being discovered by prospecting and surface drilling between 1957 and 1966. Marbridge has been the only nickel mine in the Abitibi region to date and represents the first nickel sulphide deposit in Quebec to be associated with komatiitic volcanics.
An airborne electromagnetic survey was conducted by RNC over Marbridge in 2014. Results from this survey, and work conducted on the Corporation's Preissac nickel-copper-platinum group elements ("Ni-Cu-PGE") project in 2014 and 2015, including drilling (see press release of May 21, 2015) has defined several priority drill targets on both the Preissac and Marbridge projects. There is significant potential for the discovery of high grade Ni-Cu-PGE sulphide deposits typical of the Raglan (Quebec) and Kambalda type deposits (Western Australia).
Abitibiwinni First Nation agreement
The Corporation is pleased to announce the re-naming of the Preissac and Marbridge projects as the Somanike project in connection with the signing of a cooperation agreement between Sphinx and the Abitibiwinni first nation (the "Abitibiwinni Nation"), based at Pikogan, Quebec. Somanike is the traditional name for nickel in the Algonquin language. The name change and agreement affirms the commitment of Sphinx to work cooperatively with the Abitibiwinni Nation at the earliest possible stage of exploration. Sphinx has been in communication and consulted with the Abitibiwinni Nation and other communities in the projects' area before exploration work started in 2014. In connection with the cooperation provided and services rendered by the Abitibiwinni Nation in finalizing all of these initiatives the Corporation will issue 142,857 common shares of Sphinx to the Abitibiwinni Nation (the "Abitibiwinni Shares"). The Abitibiwinni Shares have a deemed price per share of $ 0.035 and will be subject to a four month hold period. There are no cash payments involved in the transaction contemplated in the cooperation agreement. This agreement is subject to the approval of the TSX Venture Exchange.
The technical information presented in this press release has been approved by Normand Champigny, President and Chief Executive Officer of Sphinx and a Qualified Person as defined by NI 43-101.