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Amex Exploration Inc. (TSXV: AMX,OTC:AMXEF) (FSE: MX0) (OTCQX: AMXEF) ("Amex" or "the Company") is pleased to announce that it has entered into an option agreement (the "Option Agreement") to acquire a 100% undivided interest (the "Transaction") in 216 non-contiguous, unpatented mining claims in the Noseworthy, Newman, and Hepburn Townships in the province of Ontario, representing a total area of approximately 11,600 hectares (the "Properties").
Figure 1: Map showing the newly optioned Properties under the Option Agreement.
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The Newman Property holds 11 historical gold showings as well as 2 copper showings. The majority of the gold showings came from overburden drilling that were never investigated further. Highly anomalous gold results from these historical reports start at 170ppb Au (0.17 g/t Au) and range all the way to 38,000ppb Au (38 g/t Au). 7 showings contain values in excess of 1 g/t Au, which are extremely anomalous when it comes to overburden drilling.
Figure 2: Map of the Newman Property showing the location and grades of selected historical showings. Disclosure: Results have been verified against historical NI43-101 reports but compilation of historical assay certificates remains ongoing. The author has no reason to believe the filed NI43-101 reports would be inaccurate or misleading.
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The Hepburn Property is an important addition to the Perron West Property as it contains the important regional structure the Chicobi Fault, which separates the metasediments to the south from the volcanics to the north. By controlling all important geological features in the immediate area, Amex can ensure that no stone is left unturned when it comes to exploration of new high-grade gold zones.
Transaction Details
The Company, as optionee, entered into the Option Agreement with certain arm's length optionors in respect of the Properties. Pursuant to the Option Agreement, the Company will:
| (i) | pay to the optionors aggregate cash consideration of $104,000 over a three-year period commencing on the date of the Option Agreement; |
| (ii) | issue to the optionors a total of 250,000 common shares in capital of the Company (the "Shares"), subject to the approval of the TSX Venture Exchange ("TSXV"); and |
| (iii) | grant to the optionors, upon acquiring a 100% interest in the Properties, a 1.5% net smelter return royalty on the Properties, one third of which may be repurchased by the Company for $1,000,000 to reduce the royalty to a 1.0% net smelter return royalty. |
Pursuant to the Option Agreement, the Optionors will transfer the Properties to the Company upon payment of the final cash consideration payable on the third anniversary of the Option Agreement.
The Transaction remains subject to the satisfaction of a number of closing conditions and post-closing obligations, including, payment of certain cash consideration, the net smelter return royalty, certain deeds and instruments of conveyance, the approval of the TSXV, and standard closing conditions for transactions of this nature.
Qualified Persons and QAQC
The technical information in this news release has been reviewed and approved by Aaron Stone, P. Geo. (OGQ 2170 and PGO 3708) for the properties in Ontario and Jérôme Augustin P.Geo. Ph.D., (OGQ 2134) for the Perron Project in Quebec (collectively, the "Qualified Persons").
The potential grades of exploration targets discussed in this news release are conceptual in nature. The Qualified Persons have not completed sufficient work to verify historical information on the Properties and it is uncertain if further exploration will result in any targets being delineated as a mineral resource. The Company has not independently verified and cannot guarantee the accuracy or completeness of any third-party data discussed in this news release and investors should use caution in placing reliance on such information. The information provides an indication of the exploration potential of the Properties but may not be representative of expected results.
About Amex Exploration Inc.
Amex Exploration Inc. has made significant high-grade gold discoveries, along with copper-rich volcanogenic massive sulphide (VMS) zones, at its 100%-owned Perron Gold Project, located approximately 110 kilometres north of Rouyn-Noranda, Quebec. The Perron Project in Quebec consists of 183 contiguous claims for a surface area of 65.75 km². The project hosts both bulk-tonnage and high-grade gold mineralization styles.
When combined with the adjacent and contiguous Perron West Project and Abbotsford and Hepburn Projects (including additional claims acquired through staking) in Ontario, the consolidated land package spans a district-scale 502.53 km². This extensive property lies within highly prospective geology favourable for both high-grade gold and VMS mineralization.
The Perron Project benefits from excellent infrastructure: it is accessible by a year-round road, located just 30 minutes from an airport, and approximately 6.5 km from the Town of Normétal. It is also in close proximity to several process plants owned by major gold producers.
For further information please contact:
Victor Cantore
President and Chief Executive Officer
Tel: +1-514-866-8209
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 statements
This news release contains forward-looking statements. All statements, other than of historical facts, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, the transfer of the Properties, the ability of the Company to continue with exploration programs, the availability of the required funds to continue with the exploration and the potential mineralization or potential mineral resources are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "to earn", "to have', "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to meet expected, estimated or planned exploration expenditures, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, general business and economic conditions, changes in world gold markets, sufficient labour and equipment being available, changes in laws and permitting requirements, unanticipated weather changes, title disputes and claims, environmental risks as well as those risks identified in the Company's annual Management's Discussion and Analysis. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described and accordingly, readers should not place undue reliance on forward-looking statements. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
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