Apex Resources Inc. Signs Kena Property Agreement with Alberta Company
September 26, 2016
Apex Resources Inc. (APX-TSX-Venture) ("Apex") is pleased to announce that, subject to regulatory approval, it has entered into an option agreement (the "Agreement") with 1994854 Alberta Ltd. ("Acquireco") whereby Acquireco has an option to earn an 80% interest in Apex's Kena and Daylight Gold-Copper Properties (the "Project") in British Columbia by making annual cash and share payments and completing $3,000,000 in Project related exploration expenditures over four years.
The Project covers approximately 8,000 hectares of mineral claims located near Nelson, British Columbia. The Kena property is comprised of the Kena Gold, Gold Mountain and Copper King showings together with the historic Euphrates and Gold Cup gold mines. The adjacent Daylight property is comprised of the historic Daylight, Starlight, Victoria and Great Eastern gold mines. The Gold Mountain and Kena Gold Zones have been partially tested with 24,000 metres of drilling in 158 diamond drill holes.
The 80% option has a term of 4 years commencing from the date of TSXV acceptance of the Agreement (the "Effective Date"). The Agreement will terminate if Apex has not received TSXV acceptance for the Agreement by December 15, 2016.
To exercise its option and earn its 80% interest in the Project, Acquireco will:
- make the following cash option payments to Apex:
- within 5 business days from the Effective Date, $500,000;
- within twelve months from the Effective Date, an additional $250,000;
- within twenty-four months from the Effective Date, an additional $250,000; and
- within thirty-six months from the Effective Date, an additional $250,000;
- for total cash option payments of $1,250,000; and
- issue common shares of Acquireco to Apex as follows:
- within 5 business days from the Effective Date, 375,000 shares;
- within twelve months from the Effective Date, an additional 375,000 shares;
- within twenty-four months from the Effective Date, an additional 375,000 shares; and
- within thirty-six months from the Effective Date, an additional 375,000 shares;
- for a total of 1,500,000 shares; and
- incur exploration expenditures as follows:
- within twelve months from the Effective Date, $100,000;
- within twenty-four months from the Effective Date, an additional $400,000;
- within thirty-six months from the Effective Date, an additional $1,000,000; and
- within forty-eight months from the Effective Date, an additional $1,500,000,
- for total exploration expenditures of $3,000,000.
In order to exercise the 80% option, Acquireco must also have its shares listed for trading on a recognized Canadian stock exchange, or assign its interest to a company that is listed on such an exchange.
After Acquireco has earned its 80% interest in the Project, Acquireco has a second option to earn and acquire up to an additional 20% undivided interest in the Project by making a C$2 million cash payment to Apex and granting a 1% net smelter returns royalty (the "NSR Royalty") on the Property to Apex on or before the date that is 180 days following the date of exercise of the 80% option. Acquireco shall have the right to purchase one-half of the 1% NSR Royalty for the purchase price of C$5,000,000 on or before the date on which commercial production commences.
If the 20% option is not exercised, Acquireco and Apex will establish an 80:20 joint venture for the further management, exploration and development of the Property.
During the term of the option exploration programs will be developed by Acquireco in consultation with Apex's geologists. Acquireco will manage and direct the Project exploration programs.
Following TSXV Acceptance of the Agreement Apex intends to focus its activities on the exploration and development of its three Golden Triangle gold projects and its Red Ridge gold-silver project (see news releases of August 24, 2016 and September 9, 2016).
For further information on the Company's projects, visit www.apxresources.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: moc.secruoserxpa@eelm or moc.secruoserxpa@ofni
This release was prepared by Apex's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Apex expects are forward-looking statements. Although Apex believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Apex, investors should review Apex's filings that are available at www.sedar.com or Apex's website at www.apxresources.com.