RNS Number : 4009O
AEX Gold Inc
10 June 2022
("AEX", the "Company" or the "Corporation")
ACAM LP to invest upfront capital of GBP18.0 million in
Strategic Mineral Asset Joint Venture with AEX
Initial investment values Strategic Mineral (non-precious)
Assets at GBP36.7 million
TORONTO, ONTARIO - June 10(th) , 2022 - AEX Gold Inc. (AIM:
AEXG; TSXV: AEX), an independent mining company with an unrivalled
land package of gold and Strategic Mineral assets covering an area
of 7,615.85km(2) in Southern Greenland, is pleased to announce
after over a year of discussions that it has now signed a
non-binding heads of terms with ACAM LP ("ACAM") to establish a
special purpose vehicle (the "SPV") and create a joint venture (the
"JV") for the exploration and development of its Strategic Mineral
assets for a combined contribution of GBP36.7 million (circa C$58.0
million). Subject to negotiation of the final terms of the JV, ACAM
will invest GBP18.0 million (circa C$28.5 million) in exchange for
a 49% shareholding in the SPV, with AEX holding 51%. AEX is
expected to contribute its Strategic non-precious Mineral (i.e.
non-gold) licences as well as a contribution in kind, valued, in
aggregate, at GBP18.7 million (circa C$29.5 million) in the form of
site support, logistics and overhead costs associated with
utilizing its existing infrastructure in Southern Greenland to
support the JV's activities. An option for further future funding
of GBP10.0 million is to be available on the achievement of agreed
-- ACAM LP is a natural resource focused Limited Partnership
advised by S and F Investment Advisors Limited (S&F). Louis
Bacon, founder of Moore Strategic Ventures and Tim Leslie, the
founder of S&F are, indirectly, the beneficial owners of the
majority of ACAM LP.
-- Initial equity funding of GBP18.0 million (circa C$28.5
million) will be provided by ACAM to the SPV directly upon closing
of the joint venture agreement to be negotiated and entered into in
respect of the JV ("JV Agreement"). Closing of the JV Agreement
will be conditional upon, inter alia, the transfer to the SPV of
those of AEX's licences which are the subject of the JV, and the
approval of such transfers by the Government of Greenland and the
Greenland Tax Agency.
-- The funding provided to the SPV from ACAM will aid in
progressing the exploration for and identification of strategic
(non-precious) minerals across a number of AEX's existing
prospective gold targets including Sava and North Sava, Stendalen,
Paatusoq, Kobberminebugt and any other future strategic mineral
discoveries made on AEX's licences.
-- AEX will have managerial and operational control of the JV
and the planned exploration programme that will be subject to
approval of the JV Management Committee.
-- All of AEX's gold assets are excluded from the JV and will remain 100% owned by AEX.
-- Subject to the achievement of certain milestones that will be
stipulated in the JV Agreement, the parties have agreed to a
further potential pro-rata funding of GBP10.0 million (circa C$16.0
million), at a pre-money valuation of GBP48.4 million ("Subsequent
Funding"). Any pro-rated Subsequent Funding will not increase
ACAM's participating interest above 49%, provided that AEX
contributes its pro rata share of such funding.
-- The objective of both JV parties is to accelerate the
exploration of AEX's existing assets for Strategic Minerals that
are in short supply globally, in high demand and vital for the
global energy transition.
-- The execution of definitive documentation is subject, inter
alia, to the above conditions and there can be no certainty that
the JV will ultimately be formed
Eldur Olafsson, CEO of AEX Gold, commented:
"We are delighted to announce our planned partnership with ACAM
LP specifically for the funding of our non-precious metal Strategic
Mineral assets across our licence areas. This JV will enable us to
invest the capital required to bring these strategic mineral
targets up the value curve towards future production and also
enable us to explore the wider area to identify further
non-precious strategic mineral assets. The investment AEX has made
in its management team, camp, infrastructure, logistics support and
local relationships gives us the ability to deliver on this
exciting, ambitious and high potential value work programme.
"The western world is in short supply of strategic minerals,
such as copper, zinc, nickel, rare earths and graphite, to power
the energy transition, with recent geo-political events putting
security of supply into sharp focus. Southern Greenland is one of
the few remaining under-explored frontiers for these vital
minerals. Our exploration work so far has given us confidence that
South Greenland has the potential to host world-class deposits of
"Starting with this investment by ACAM of GBP18 million for a
49% stake in these strategic mineral assets, this deal puts a
concrete initial value on the non-precious mineral assets in our
portfolio for the first time. To reflect the broader mineral
potential in AEX's portfolio, we will be changing the Company's
name to Amaroq Minerals Limited in the near future."
AEX Gold's Key Non-Gold Assets
The Corporation believes that this area (covered by two mineral
licences) holds the potential to host Iron Oxide, Copper Gold
(IOCG) mineralization of a similar style to that seen across the
Central Mineral Belt of Labrador and the Kiruna Belt of Scandinavia
both hosting globally significant IOCG deposits.
AEX's mineral systems model for South Greenland has highlighted
the geodynamic association of the Sava and North Sava area to the
Gardar and Voisey's Bay provinces that host globally significant
magmatic sulphide and REE deposits.
Further to this study, the Corporation conducted remote sensing,
airborne geophysics, geological mapping, rock chip sampling, ionic
geochemistry and spectral imagery during the 2021 field season, the
results of which were announced 12 April, 2022.
Spectral remote sensing was carried out to guide geological
fieldwork conducted in July 2021. Several priority targets were
identified based on the remote sensing study, a structural
lineament assessment and historic geochemistry data. AEX's field
programme concluded having assessed the highest priority targets
within the licences. This programme saw geological mapping, grab
sampling and an ionic geochemistry survey designed to assess the
anomalous altered and mineralized areas. One target in particular
has been identified in the northwest of the licence, which hosts
intense hydrothermal (potassic) alteration over 500 metres.
In addition, an airborne magnetic and radiometric survey was
conducted in September 2021 over the whole licence with a line
spacing of 100 metres.
The conclusions of the 2021 exploration programme, were that
three significant and coherent multi-element anomalies were
identified that provide important insights to the alteration,
lithologies present and the style of mineralization. These targets
are open and require additional investigations but appear to have
the geochemical and alteration signatures akin to IOCG
mineralization. The Company's geological models also suggest that
these occurrences may be linked to similar deposits both in Canada
The Corporation acquired the right to conduct exploration
activities on approximately 2486km(2) of the existing 2021/11
licence, split into two areas around the Qasinngortoq and
Kangerlussuatsiaq areas of South Greenland ("Stendalen") through
the acquisition from the Orano group as announced on 12 May, 2022.
All related transfer documents have been signed by the Corporation
and are awaiting approval by the Government of Greenland.
The Stendalen Iron-Vanadium-Titanium layered intrusive has
previously been explored by the Geological Survey of Denmark and
Greenland ("GEUS"), Softrock Mineral and NunaMineral A/S. This
intrusive is eight km in diameter and hosts a magnetic layer up to
20 metres thick which has provided historical samples yielding
between 1-10.5% titanium dioxide (TiO(2) ) (average of 4.8%) and
226-5,753ppm vanadium (V) (average 2,335ppm). Stendalen also hosts
the potential for nickel, copper and platinum group element (PGE)
mineralisation with grab samples providing grades of 0.8% copper,
0.5% nickel and 0.1% cobalt.
The Corporation believes that Stendalen could host
Iron-Vanadium-Titanium mineralisation similar to the 1.55 billion
tonne Øygrei deposit in southwest Norway. In addition to this,
Stendalen has the potential to host mineralisation similar to that
seen at Voisey's Bay in Labrador (36.8Mt @1.8% Nickel, 0.8%copper
and 0.1% cobalt) which is also located along the Gardar-Voisey's
Bay Fault Zone.
The Paatusoq REE, niobium, tantalum, zirconium project is a
syenite complex that is 20 km in diameter covering an area of
>240 km(2) within an unexplored section of the Gardar Province
that also hosts the Kvanefjeld and Tanbreez rare earth projects.
These projects collectively host more that 1.5% of the global rare
earth mineral resources. The Paatusoq target is located within the
same licence as Stendalen, acquired from the Orano group as
announced on 12 May, 2022.
The Corporation acquired the right to conduct exploration
activities on approximately 220km(2) of land in an area of
Aputaajuitsoq in South Greenland. The exploration rights have been
granted to the Corporation under a new separate Exploration Licence
2022/01, referred to as Kobberminebugt.
The area hosts numerous copper-gold showings including the small
past-producing Josva copper mine, which was last worked in 1914
with reported grades up to 5% copper, 1.5 g/t gold and 250 g/t
silver. Copper mineralisation discovered to date is found within
volcanic and sedimentary sequences as disseminated stratabound
sulphides, and are locally enriched into layers due to strong
folding or in quartz veins and breccias. Sulphide concentrations
vary from 1-50% volume depending on the style of mineralisation.
Some showings can be followed for several hundred metres along
strike with widths of up to several metres.
Mineralisation has been interpreted as IOCG style by the GEUS
but may also represent a copper skarn system. The licence is
located approximately 100 km west of AEX's Sava exploration
project, which is similarly targeting granite hosted IOCG
mineralisation in the Julianehåb granitic batholith. AEX believes
that the region is underexplored for IOCG deposits and shows many
geological similarities to the IOCG province of northern Sweden,
which hosts several operating mines.
AEX Gold Inc.
Eldur Olafsson, Executive Director and CEO
+354 665 2003
Eddie Wyvill, Investor Relations
+44 (0)7713 126727
Stifel Nicolaus Europe Limited (Nominated Adviser and
+44 (0) 20 7710 7600
Panmure Gordon (UK) Limited (Joint Broker)
+44 (0) 20 7886 2500
SI Capital Limited (Joint Broker)
+44 (0) 1483 413500
Camarco (Financial PR)
+44 (0) 20 3757 4980
For Corporation updates:
Follow @AexGold on Twitter
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AEX's principal business objectives are the identification,
acquisition, exploration and development of gold and Strategic
Mineral properties in Greenland. The Corporation's principal asset
is a 100% interest in the Nalunaq Project, an advanced exploration
stage property with an exploitation licence including the
previously operating Nalunaq gold mine. The Corporation has a
portfolio of gold and Strategic Mineral assets covering
7,615.85km(2) , the largest mineral portfolio in Southern Greenland
covering the two known gold belts in the region. AEX is
incorporated under the Canada Business Corporations Act and wholly
owns Nalunaq A/S, incorporated under the Greenland Public Companies
This press release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the Corporation's current expectations regarding future events and
the future growth of the Corporation's business. In this press
release there is forward-looking information based on a number of
assumptions and subject to a number of risks and uncertainties,
many of which are beyond the Corporation's control, that could
cause actual results and events to differ materially from those
that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include but are not
limited to the factors discussed under "Risk Factors" in the Final
Prospectus available under the Corporation's profile on SEDAR at
www.sedar.com. Any forward-looking information included in this
press release is based only on information currently available to
the Corporation and speaks only as of the date on which it is made.
Except as required by applicable securities laws, the Corporation
assumes no obligation to update or revise any forward-looking
information to reflect new circumstances or events. No securities
regulatory authority has either approved or disapproved of the
contents of this press release. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No. 596/2014 on
Market Abuse ("UK MAR"), as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018, and Regulation
(EU) No. 596/2014 on Market Abuse ("EU MAR").
Qualified Person Statement
The technical information presented in this press release has
been approved by James Gilbertson CGeol, VP Exploration for AEX
Gold and a Chartered Geologist with the Geological Society of
London, and as such a Qualified Person as defined by NI 43-101.
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(END) Dow Jones Newswires
June 10, 2022 02:01 ET (06:01 GMT)
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