CALGARY,
Aug. 3, 2012 /PRNewswire/ - Boxxer
Gold Corp. (BXX-TSXV; OTC -BXXRF) ("Boxxer" or the
"Company") is pleased to announce that it has entered into
an arm's length, non-binding letter of intent with a partnership of
three Ontario individuals (the
"Vendors") to acquire 23 mineral claims covering 6,997.9
acres (the "Properties") contiguous to its East Breccia
copper-molybdenum-silver property located approximately 60
kilometres north of Sault St Marie, Ontario (the "Transaction"). The
proposed Transaction is subject to regulatory approval and other
conditions, including, the execution of a definitive agreement.
Highlights:
Mountain Breccia Property (4,269.9
acres):
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a) |
|
Exploration target is copper-molybdenum mineralization hosted
in a breccia pipe, |
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b) |
|
Historical drilling focused on delineating high grade
copper-gold-silver mineralization such as DDH 97-35 returned 0.64%
Cu and 1.71 g/t gold over 3.8 m. DDH 98-04 returned 213.6 g/t
silver and 8.7% Cu over 0.15 m. and 44.3 g/t silver, 0.64% Cu and
0.54 g/t gold over 8.6 m. DDH 98-08 returned 256.0 g/t silver,
0.78% Cu and 1.0 g/t gold over 6.8 m, |
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c) |
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Widespread copper+/-molybdenite mineralization reported in
historical drill logs, and |
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d) |
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Six similar anomalies defined by 2009 VTEM survey. |
Tribag Property (2,728.0 acres):
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a) |
|
Hosts the South Breton Breccia immediately adjacent to the
former Tribag copper mine, |
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b) |
|
The exploration target is copper-molybdenum mineralization
hosted in breccia pipes, |
| |
c) |
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The property covers the northeast extension of the West Breccia
zone of mineralization, |
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d) |
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Mineral claims surround the former Tribag copper mine, and |
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e) |
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The area is still prospective for discovery of additional
breccia pipes. |
Boxxer's President and CEO, Elmer B. Stewart, explained; "The proposed
acquisitions are "strategic" for Boxxer to acquire a sufficient
land package to expand its exploration activities in the East
Breccia area including the acquisition of several reported
mineralized breccias not previously owned by Boxxer. This
acquisition increases Boxxer's land base separate from the
copper-molybdenum-silver mineralization contained in the East and
West breccia zones and provides Boxxer with additional exposure to
advanced polymetallic copper exploration projects located in a
historical mining area of Ontario."
Purchase Agreement Highlights:
Pursuant to the terms of the proposed
Transaction, Boxxer is purchasing a 100% interest in the Mountain
Breccia property and the Tribag property (subject to the below NSR
payable to the Vendors) for the following consideration:
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a) |
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Issuing 2.4 million common shares of Boxxer to purchase the
Tribag property, |
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b) |
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Issuing 2.0 million common shares of Boxxer to purchase the
Mountain Breccia property, |
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c) |
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Boxxer has, subject to certain conditions, a right of first
refusal to purchase certain other mineral claims from the Vendors
covering the former Tribag copper mine, |
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d) |
|
Payment of shares (the "Bonus Payments") in the then
operating company equal to $1 million in value at the time when a
bankable feasibility study is completed on the Mountain Breccia
and/or the Tribag properties (for greater certainty, only one Bonus
Payment will be made for the first bankable feasibility study
completed on each of the Mountain Breccia and Tribag properties for
a maximum of two Bonus Payments if bankable feasibility studies are
completed on each of the Mountain Breccia and Tribag
properties), |
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e) |
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For a deposit straddling the boundary of either the Mountain
Breccia or the Tribag properties, the Bonus Payment applies to the
Mountain Breccia property and the Tribag property only if: i)
greater than 50% of the reserves used in the bankable feasibility
study are located on either the Mountain Breccia property or the
Tribag property or ii) greater than 50% of the Net Present Value
(based on the Discounted Cash Flow analysis using an 8% discount
rate) established by the bankable feasibility study on the deposit
straddling the boundary is located on either the Mountain Breccia
property or the Tribag property, and |
| |
f) |
|
A 2% Net Smelter Return ("NSR") to the Vendors, of which
Boxxer has the right to repurchase 1% of the NSR at any time for a
cash payment to the Vendors of $1,200,000. |
The proposed Transaction is subject to the
approval of the TSX Venture Exchange, the negotiation and execution
of a definitive agreement and other customary conditions for
acquisitions of this nature. As such, there can be no assurance
that the proposed Transaction will be completed as proposed or at
all.
About Boxxer Gold Corp.
Boxxer is a Canadian junior resource company involved in the
exploration of the Boss and Buena Vista copper projects in the
state of Nevada, the DOK
copper-gold porphyry property in Northwest B.C., the East Breccia
copper-silver-molybdenum property in Ontario. Boxxer also has the Crescent
Peak gold-silver project in Nevada
and the Gordon Lake gold project located 110 kilometres north of
Yellowknife NWT, Canada.
Elmer B. Stewart,
MSc. P. Geol., President of Boxxer Gold, is the Company's nominated
Qualified Person pursuant to National Instrument 43-101, Standards
for Disclosure for Mineral Projects, and has reviewed the technical
information disclosed in this news release.
On behalf of the Board of Directors
Elmer B. Stewart P.
Geol. MSc.
President and CEO
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.
Forward-Looking Statements: This news
release may contain certain forward-looking information. All
statements included herein, other than statements of historical
fact, are forward-looking information and such information
involves various risks and uncertainties. There can be no assurance
that such information will prove to be accurate, and actual results
and future events could differ materially from those anticipated in
such information. There is no certainty that the proposed
Transaction will be completed or that a definitive agreement for
the proposed Transaction will be executed, that exploration of the
Properties would result in the discovery of additional
mineralization or that the reported historical diamond drilling
results can be verified or that the proposed transaction would be
completed. For any forward-looking information given,
Management has assumed that a standard definitive agreement can be
negotiated with the Vendors and that the results it has received
and the interpretation thereof are reliable, and has applied
geological and geophysical interpretation methodologies which are
consistent with industry standards. Although Management has a
reasonable basis for the conclusions drawn, actual results may
differ materially from those currently anticipated in such
statements. A description of additional assumptions used to develop
such forward-looking information and a description of risk factors
that may cause actual results to differ materially from
forward-looking information can be found in Boxxer's disclosure
documents on the SEDAR website at www.sedar.com. Boxxer
does not undertake to update any forward-looking information except
in accordance with applicable securities laws.
SOURCE Boxxer Gold Corp.