VANCOUVER, BC, Sept. 22, 2021 /CNW/ - Essex Minerals
Inc. (the "Company") (TSXV: ESX) (OTCQB: ESXFM) (FRA:
EWX1) is pleased to announce that further to its Australian
gold earn-in joint venture it has reached agreement on revised
terms to acquire 100% of its joint venture partner, KNX Resources
Ltd ("KNX").
Highlights
- The revised purchase terms shall comprise the issuance of
5,000,000 ordinary shares in Essex
(the "Purchase Shares") and 5,000,000 two-year share purchase
warrants with an exercise price of 20c per warrant (the "Purchase
Warrants") to the shareholders of KNX.
- The Company shall retain the right to force conversion of the
Purchase Warrants if the Essex
share price closes above $0.45 per
share for more than five consecutive trading days (the "Conversion
Event") prior to their expiry date.
- Upon occurrence of the Conversion Event, Essex shall undertake on a best endeavours
basis to arrange buyers for any underlying shares from any
unexercised Purchase Warrants at $0.40 per share and retain $0.20 per share from the sale proceeds for the
Purchase Warrant exercise and deliver $0.20 per share to each KNX Purchase
Warrantholder.
- The previous condition on the spin-out and listing of Optegra
Capital Corp ("Optegra") has been removed as a condition precedent
to the acquisition.
- The Purchase Shares and Purchase Warrants will be issued to the
KNX shareholders on the basis of one Essex Purchase Share and one
Essex Purchase Warrant for approximately every 4.052 KNX shares in
issue.
- Completion of the acquisition will give Essex an 88% interest in the Cumberland and Compass Creek Projects and 100%
of the Mt Turner Project through its 100% ownership of KNX.
Essex Minerals President and CEO Paul
Loudon said: "De-linking the KNX acquisition from the
spin-out timing of Optegra means that both investment activities
can progress simultaneously. KNX management is pushing ahead with
exploration on its Australian gold projects, while Essex continues to work on positioning Optegra
as a renewable energy streaming company which would support a spin
out and listing as a separate company."
Additional Information
The KNX acquisition is subject to the approval of the TSX
Venture Exchange. The Purchase Shares and Purchase Warrants will be
subject to a statutory four month hold period from the date of
issuance.
If Essex is unable to deliver
the $0.20 per share to each KNX
Warrant holder within 60 days of a Conversion Event, the KNX
Warrant holders will be free to exercise the Purchase Warrant by
delivering the $0.20 exercise price
to Essex in the normal manner.
About KNX
KNX is arm's length private Australian exploration company with
25 shareholders.
The Mt Turner Project, 15km northwest of the Georgetown, comprises a 48 sq km exploration
permit granted to KNX Resources in 2019. A first phase drilling
program has been completed to test the width and plunge of gold and
silver bearing shoots identified in the Drummer Fault target. In
addition to drilling on the Drummer Fault, a detailed soil sampling
program is underway on the Mt Turner porphyry copper-molybdenum
target with a view to defining drill targets.
The Cumberland property
comprises four granted exploration permits covering 250 sq km, 70
km northwest of the former 5 million-ounce Kidston gold mine. Hole
1 encountered 18.8 g/t gold and 160.6 g/t silver over 6.4m from 139.5m
down hole (as announced in the Company's news release dated
September 2, 2020), and 9 additional
stratigraphic and follow-up drill holes over 6 km of structure
encountered epithermal gold and silver grades of varying tenor
within wide zones of hydrothermal alteration with late-stage
carbonate (epithermal) overprint. The Cumberland work program will also include
additional surface sampling on the numerous untested prospects on
the property which are yet to be drill tested.
The Compass Creek property comprises two granted exploration
permits covering 48 sq km in the Pine Creek goldfield, 28 km north
of Kirkland Lake's 2.5Mtpa Union
Reefs mill in the Northern Territory.
The property contains three drill ready targets within a major
anticlinal structure displaying favourable stratigraphy cut by NNW
faulting related to the Pine Creek Shear Zone – a major regional
structure which has historically produced more than 5 million
ounces of gold.
About Essex
Essex Minerals is mineral company focussed on exploration and
funding development of a portfolio of mineral projects in Tier 1
locations. The Company adopts an option earn-in and joint venture
model where in the first instance it can earn project interests by
backing geological teams that have already expended the time and
capital to assemble top quality, advanced projects. Management's
time is shared across several different projects, as the geological
teams already in place manage the approved exploration and
development programs. This strategy has the potential to
accelerate the growth in value for Essex shareholders by earning an interest in a
range of projects of merit in a much shorter time frame than
otherwise would be possible, while at the same time, sharing
downside risk across a portfolio of mineral investments.
Essex has also sponsored the
formation of Optegra which is focussed on adapting the established
metal stream finance model to opportunities in the renewable energy
sector. The Company continues to negotiate a portfolio of renewable
stream investments for Optegra, but the planned spin out timing has
been impacted by the general pullback globally in international
capital markets.
Qualified Person
All of the scientific and technical information contained in
this news release has been reviewed and/or prepared by Mr
Lee K. Spencer, BSc (Hons), MSc,
MAusIMM, a "Qualified Person" within the meaning of National
Instrument 43-101 - Standards of Disclosure for Minerals
Projects.
Paul Loudon
President & CEO
www.essexminerals.com
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.
SOURCE Essex Minerals Inc