Alexandria Sells the 14 Claim West Zone Property to Agnico Eagle
for $5 Million
TORONTO, ONTARIO--(Marketwired - Jan 14, 2014) - Alexandria
Minerals Corporation ("Alexandria " or the "Company")
(TSX-VENTURE:AZX)(PINKSHEETS:ALXDF)(FRANKFURT:A9D) is pleased to
report that it has executed and closed a definitive asset purchase
agreement (the "Asset Purchase Agreement") and a 2% Net Smelter
Return Royalty ("NSR" or "royalty") Agreement with Agnico Eagle
Mines Limited ("Agnico"), on January 13, 2014 (the "closing
date").
Pursuant to the terms of the Asset Purchase Agreement,
Alexandria has sold to Agnico the mineral rights to the West Zone
Au-Cu Property comprising 14 mining claims located in Bourlamaque
and Louvicourt Townships, Quebec, for $5,000,000 cash. Alexandria
also retains a 2% NSR on the claims, which starts after 210,000
ounces of gold have been produced from the claims.
Eric Owens, President and CEO of Alexandria Minerals, states,
"We are extremely pleased with the sale of these claims to Agnico
Eagle, a committed and leading international gold producer. In 2010
Agnico made their first strategic investment in Alexandria by
becoming a 10% partner, and we look forward to continuing to build
upon our relationship with them. This transaction also confirms to
us the rationale for being in Val d'Or - not only is it a place to
find multi-million ounce gold deposits, but also a place where
value can be provided from smaller deposits while exploration
continues for the large ones."
The West Zone is a recent discovery that contains an Inferred
Resource estimate as follows (National Instrument 43-101
compliant): 14,863,740 tonnes grading 0.69 g/t Au and 0.41% Cu, for
332,074 ounces of gold and 61,255,885 kilograms of copper
(Estimated by Christian d'Amours of Geopointcom of Val d'Or; see
Alexandria Press Release, February 7, 2013).
In addition to the lump sum payment of $5,000,000, the following
terms also apply to the sale:
- Alexandria has been granted a 2% NSR on any metal production
after 210,000 ounces of gold have been produced
- Agnico retains the right to purchase one-half of the royalty,
or 1%, by paying the sum of $7,000,000 to Alexandria, and retains
the right of first refusal for the remaining 1% NSR
- Agnico is responsible for the underlying (pre-existing)
royalties on the claims
- Alexandria retains the right of first offer to re-acquire the
claims following mining and reclamation for the sum of $1
As a result of the sale, Alexandria has working capital of
approximately $6 million and continues to explore on its large
Cadillac Break property package with diamond drilling and
geophysics.
Alexandria Looks
Forward to 2014
The West Zone claims represent 2% of Alexandria's Cadillac Break
Property package; Alexandria retains 662 claims out of 676 claims
straddling the Cadillac Break Tectonic Zone. This property package
is one of the largest, most prospective, underexplored and
contiguous mineral properties in the Val d'Or region. Alexandria
retains the claims underlying the main Akasaba mine, east of the
West Zone, where the Company first began drilling on the
property.
The Company is in progress with a 10,000 meter drilling program.
The first phase of this program has been focused on the Valdora
Property to the north of Akasaba, testing Akasaba-like targets.
Drilling has now commenced on the North Zone at Akasaba, where four
shallow holes will test for near-surface, disseminated
mineralization. Results are pending.
Drilling will then follow at Alexandria's Sleepy project,
located 15 km east of Akasaba. The Company will conduct a step-out
drilling program, both below and to the east of the Inferred
Resource of 1.5 million tonnes grading 3.0 g/t Au (estimated by
Christian d'Amours of Geopointcom; see Press Release October 29,
2009).
Over the past two years, we have had considerable success with
small step-out drill programs: diamond drill hole SAX-11-009
intersected 6.82 g/t Au over 16.96 m (True Width, "TW") and DDH
SAX-13-025 intersected 3.83 g/t Au over 13.31 m and, separately,
6.92 g/t Au over 2.65 m TW (Press Releases, September 8, 2011 and
May 15, 2013). Alexandria believes there is considerable upside
potential at Sleepy.
Alexandria has also embarked on a broad geophysical program,
consisting principally of Induced Polarization surveys, over its
Valdora, Akasaba, Annamaque, Oramaque, Sabourin, and Ducros
properties. These studies cover significant portions of the western
half of the Cadillac Break property group and will provide Company
geologists with further tools for choosing drill targets in the
future.
Further information about the Company is available on the
Company's website, www.azx.ca, or our social media sites listed
below:
Facebook:
https://www.facebook.com/pages/Alexandria-Minerals-Corporation-AZXTSXV/186115074772628
Twitter: https://twitter.com/azxmineralscorp
YouTube: http://www.youtube.com/AlexandriaMinerals
Flickr: http://www.flickr.com/alexandriaminerals/
Eric Owens (PGeo) and Emilie Batailler (PGeo) have reviewed the
content of this press release. All exploration work on the property
is conducted under the direct supervision of Ms. Batailler.
Alexandria's QA/QC program is consistent with NI 43-101 and
industry best practices and has been previously addressed in the NI
43-101 Technical Report on the Cadillac Break properties (February
2008) as well as in subsequent NI 43-101 reports found on the
Company's website or on www.sedar.com.
About Alexandria
Minerals Corporation
Alexandria Minerals Corporation is a Toronto-based junior gold
exploration and development company with one of the largest
portfolio of properties along the prolific, gold-producing Cadillac
Break in Val d'Or, Quebec. Global gold resources are distributed
between three projects on its Cadillac Break Property package,
Akasaba, Sleepy, and Orenada, the details of which can be found on
the Company's website at www.azx.ca. Agnico Eagle Mines Limited,
with three producing gold mines in the region, owns roughly 9% of
the Company.
WARNING: This News Release may contain forward-looking
statements including but not limited to comments regarding the
timing and content of up-coming work programs, geological
interpretations, receipt of property titles, potential mineral
recovery processes, etc. Forward-looking statements address future
events and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Alexandria Minerals
Corporation relies upon litigation protection for forward-looking
statements. 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.
Alexandria Minerals CorporationMary VorvisCorporate Development
Director(416) 305-4999Alexandria Minerals CorporationEric Owens,
PGeoPresident/CEO(416) 363-9372www.azx.ca
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