Oct 7 2015
NGEx Resources Inc. ("NGEx" or the "Company") is pleased to announce that NGEx and Teck Resources Limited ("Teck") have entered into an agreement (the "Purchase Agreement") to sell their respective interests in the GJ copper-gold project (the "GJ Project") located in northwest British Columbia, Canada to Skeena Resources Limited ("Skeena"). NGEx holds an undivided 49% interest in the GJ Project and Teck holds an undivided 51% interest in the GJ Project.
Under the terms of the Purchase Agreement which is subject to TSX Venture Exchange approval, Skeena will acquire 100% of the GJ Project in return for the following consideration:
- $1.5 million payable on closing, with $500,000 payable in cash and $1.0 million payable by the issuance of Skeena common shares having a market value of $1,000,000 (market value to be based on a 10- day volume weighted average Exchange trading price);
- $1.5 million payable by the issuance of Skeena common shares on or before the 2nd anniversary of the closing;
- $1.5 million payable by the issuance of Skeena common shares on or before the 5th anniversary of the closing; and
- $4.0 million payable in cash within 45 days of commercial production from the GJ property.
NGEx will receive 49% of all proceeds from the sale including a 49% share of the retained royalties as discussed below.
NGEx and Teck will retain a 2% Net Smelter Return (NSR) Royalty on the GJ Block which contains the GJ Resource of which 1% can be purchased for $2 million. Teck and NGEx will retain a 1% NSR on the Northern Block of Claims of which 0.5% can be purchased for $1 million. Teck and NGEx's royalties will be held under separate royalty agreements in favour of Teck and NGEx respectively. As such, NGEX will hold a 0.98% NSR on the GJ Block and a 0.49% NSR on the Northern Block.
NGEx continues to focus on its core South American copper-gold projects including Los Helados, Josemaria, and Filo del Sol. This transaction is part of the Company's continuing effort to rationalize its portfolio and to realize value from its non-core projects.
About NGEx
NGEx is a Canadian mineral exploration company with exploration projects in Chile, Argentina, and Canada. The Company's shares are listed on the Toronto Stock Exchange and Nasdaq Stockholm under the symbol "NGQ". The Company's focus is on advancing its South American projects which include several large copper-gold systems including the Josemaria, Los Helados, and Filo del Sol projects, located on a land package that the Company holds in Chile's Region III and adjacent San Juan Province, Argentina. Los Helados is part of a joint venture in which the Company holds 60% and Pan Pacific Copper Co., Ltd. holds 40%. Josemaria is part of a joint venture in which the Company holds 60% and Japan Oil, Gas, and Metals National Corporation (JOGMEC) owns 40%. In addition, NGEx holds a 100% interest in Filo del Sol amongst an extensive portfolio of other 100% owned early stage exploration projects located in Chile and Argentina.
On behalf of the board
Wojtek Wodzicki, President and CEO
Additional Information
The information in this release is subject to the disclosure requirements of NGEx Resources under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on October 5, 2015 at 3:00 p.m. Pacific Time.