NGEx acquires 40% of Josemaria held by JOGMEC
NGEX RESOURCES Inc. has acquired the 40-percent interest in the Josemaria project held by its partner Japan Oil, Gas, and Metals National Corp. (JOGMEC). Pursuant to the
terms of the agreement, the consideration is payable in three instalments: $3-million (U.S.) payable immediately, $5-million (U.S.) upon a development decision being made and $13-million (U.S.) upon the commencement of commercial production from the property for total cash consideration of $21-million (U.S.). In addition, the agreement grants JOGMEC an option to purchase up to 40 per cent of the material produced from any mine on the property based on the prevailing market price for the material. As a result of entering into the
agreement, NGEx now holds a 100-per-cent interest in the Josemaria project.
Commenting on the transaction, Wojtek Wodzicki, president and chief executive officer, remarked: “We are very pleased to increase our interest in Josemaria and are excited about the development flexibility that comes with full ownership. We would like to thank JOGMEC for their support through many years of successful exploration, and look forward to opportunities to work with them again in the future. It has been an excellent partnership.”
Josemaria is a copper-gold porphyry deposit located in San Juan province, Argentina. At a copper equivalent (CuEq) cut-off grade of 0.2 per cent, Josemaria has an indicated resource of 1.07 billion tonnes of 0.44 per cent CuEq (0.31 per cent copper, 0.22 gram per tonne gold and one g/t silver) containing 7.4 billion pounds of copper, 7.4 million ounces of gold and 34.5 million ounces of silver. Included in the above indicated resource is a near-surface high-grade zone defined
by a CuEq cut-off grade of 0.6 per cent which contains 148 million tonnes of 0.76 per cent CuEq (0.56 per cent copper; 0.38 g/t gold and 1.5 g/t silver).
About NGEx Resources Inc.
NGEx is a Canadian mineral exploration company with exploration projects in Chile and Argentina. The company’s focus is on advancing its project Constellation, which contemplates the integrated development of two large copper-gold deposits, Los Helados and Josemaria, located in Chile’s Region III and adjacent San Juan province, Argentina. Both Los Helados and Josemaria are subject to separate joint exploration agreements with joint exploration partners. The company is the majority partner and operator for both projects. The company is also actively seeking new copper-gold projects in Argentina.
Technical disclosure for the Josemaria project included in this press release has been reviewed and approved by Bob Carmichael, PEng (B.C.). Mr. Carmichael is NGEx’s vice-president of exploration and a qualified person (QP" under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
We seek Safe Harbor.
Jack Lundin, Lukas Henrik Lundin, David Edward Mullen, Cheri Lynn Pedersen, William Archibald Rand, Wojtek Alexander Wodzicki
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