KELOWNA, BC,
March 15, 2013 /CNW/ - Metalex
Ventures Ltd. (TSXV : MTX) ("Metalex", the "Company") is
pleased to announce the signing of the earn-in agreement with
Dundee Corporation ("Dundee") wherein Dundee or its designate can earn up to a 51%
interest in the U2 and T1 kimberlite pipes (the "Project") through
a four stage investment of up to CAD$51
million.
First Right - $5
million convertible loan
As per the letter agreement signed on
January 15, 2012 Dundee advanced a
$5 million interest free loan to
Metalex. The funds will be used for preparatory work for the
10,000+ ton bulk sample.
Once the amount provided under the loan has been
expended, Dundee will be deemed to
have earned a 5% interest in the Project ("First Election"), which
it shall have the option to convert into Metalex shares at
$0.90 per share.
Second Right - $12.5
million to earn a further 12.5% interest
If Dundee makes
the First Election, it will be committed to invest a minimum of a
further $12.5 million (in addition to
the $5 million loan), commencing one
month after receipt by Metalex of the final permitting for the
10,000+ ton bulk sample. Should Dundee and Metalex agree on a
budget of greater than $12.5 million
Dundee shall earn an additional 1%
interest for each $1 million spent
over and above $12.5 million
($17.5 million inclusive of the
$5 million loan). Once payment
is received, Dundee will hold a
minimum of a 17.5% interest in the Project and will have earned its
Second Right and may undertake its Third Right.
Third Right - Up to $22.5 million to earn a 40% interest
Under the Third Right investment, Dundee will make a further payment to bring
its total contribution to $40 million
which will bring its interest to 40%. During this phase,
Dundee will incrementally earn a
1% interest in the Project for each $1
million spent.
Fourth Right - $11
million to earn a 51% interest
Upon the Fourth Right investment of an
additional $11 million ($51 million total) Dundee will have earned a 51% interest in the
Project. These funds are to be used to complete a feasibility
study on the Project. If the feasibility study is positive,
Dundee will use its reasonable
commercial efforts to secure funding for the development of the
mine to commercial production within four years. Metalex's
and Dundee's respective portions
of mine development costs are to be repaid from 80% of each of
their respective shares of free cash flow from the mine.
U2 Profile
The U2 kimberlite pipe is a highly prospective
diamond development project located in the James Bay Lowlands of
Ontario, near De Beers' Victor
Mine. Diamonds recovered from the U2 pipe are of exceptional
quality - with 88.8% by weight of the +1.7mm diamonds being white
and 1.1% being colored. The large size of the U2 pipe shows
the potential to host a substantial tonnage.
Currently the Project is awaiting two key
permits which will allow the construction of 60 kilometers of
winter road from the Victor Mine site across to the U2
project. Though the applications were submitted to the
Ministry of Natural Resources in Cochrane for these permits on January 30, 2012 and March
26, 2012 the permits have yet to be received. With the
winter road season rapidly coming to an end it is highly probable
that the mobilization of the equipment and supplies needed to
conduct the program will only occur during the winter of
2013/2014.
The technical information and results reported
here have been reviewed by Mr. Chad
Ulansky, P.Geol., a Qualified Person under National
Instrument 43-101, who is responsible for the technical content of
this release.
The agreement with Dundee remains subject to regulatory
acceptance.
Signed,
Charles
Fipke
Charles Fipke
Chairman
Forward Looking Statements
Some of the statements contained herein may be
forward-looking statements which involve known and unknown risks
and uncertainties. Without limitation, statements regarding
potential mineralization and resources, exploration results, and
future plans and objectives of the Company are forward looking
statements that involve various risks. The following are
important factors that could cause the Company's actual results to
differ materially from those expressed or implied by such forward
looking statements: changes in the world wide price of mineral
commodities, general market conditions, risks inherent in mineral
exploration, risks associated with development, construction and
mining operations, the uncertainty of future profitability and the
uncertainty of access to additional capital. There can be no
assurance that forward-looking statements will prove to be accurate
as actual results and future events may differ materially from
those anticipated in such statements. Metalex undertakes no
obligation to update such forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on such
forward-looking statements.
Neither 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 Metalex Ventures Ltd.