Cap-Ex Iron Ore Signs Agreement For Road Access, DSO Exploration

Cap-Ex Iron Ore (TSXV:CEV) has entered an agreement with Tata Steel Minerals Canada to allow Tata Steel to construct a roadway and conduct DSO exploration on Cap-Ex’s 100 percent owned block 103 property.

As quoted in the press release:

In return TSMC has agreed to pay the Company $250k cash and conduct an initial $550k DSO exploration program on Block 103. The exploration program, to be determined by TSMC, will include gravity testing and pit testing of geophysical anomalies previously identified by Cap-Ex and TSMC geologists. The program is to be completed by September 30, 2015 during which period Cap-Ex has granted TSMC exclusivity in regards to exploring DSO prospects on Block 103.

At any time prior to September 30, 2015, TSMC has the right to advise Cap-Ex that it wishes to enter into a joint venture agreement regarding the DSO potential of Block 103 in which event both parties agree to negotiate in good faith for a period of 90 days. If at any time TSMC decides it does not to continue with the exploration program, or both parties cannot agree on a joint venture agreement, TSMC will pay an additional $200k cash to Cap-Ex in full satisfaction of its exploration commitment under the Agreement.

Cap-Ex CEO, Graham Harris, said:

[T]o date the Company’s focus has been on developing thePEA of the 7.8 Billion tonne Magnetite deposit on Block 103. Over the next 12 months we look forward to working closely with our neighbour, TSMC, to explore the DSO potential of Block 103.

Click here to read the Cap-Ex Iron Ore (TSXV:CEV) press release