NGEx ac­quires 40% of Jose­maria held by JOGMEC

Stockwatch Daily - - MINES & METALS - Mr. Wo­jtek Wodz­icki re­ports

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.”

About Jose­maria

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.

Qual­i­fied per­sons

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

(NGQ) Shares: 213,508,963

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