VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 6, 2016) – Cap-Ex Iron Ore Ltd. (TSX VENTURE:CEV) (“Cap-Ex” or the “Company”) is pleased to announce it has entered into an agreement (the “Agreement”) to acquire a 90% interest (the “Interest”) in the Aspen Gold Property in central British Columbia. The 12 mineral claims comprising the Aspen Gold Property cover an area of 5,537 hectares and are located 25 kilometres northeast of New Gold Inc’s 9.5 million ounce Blackwater gold deposit in the Nechako Plateau. The purchase price for the Interest is $100,000 with the Vendor retaining a 10% interest in the Aspen Gold Property (“Aspen”). The 10% interest is carried to the point at which a bankable feasibility study, if any, is completed. Upon completion of a bankable feasibility study, the Company and the Vendor have agreed to enter into a joint venture agreement. There are no royalties on the Aspen Gold Property. The Agreement is subject to its approval by the TSX-Venture Exchange.
The Aspen Gold Property is strategically located within the “Nechako Uplift” block identified by New Gold Inc. Recent airborne magnetic geophysical surveys completed by Geoscience BC (2014) have identified distinct ovoid magnetic response halos (~5km in diameter) representing granitic porphyry stocks proximal to both the Blackwater deposit and Aspen. Given the proximity of these stocks to the Blackwater, Capoose, and Chu deposits in the region, they are interpreted to have a first order control on the mineralization within the district. Aspen is ideally located on the margin of one of these two distinct halos, where the Blackwater deposit sits on the margin of the other. The property has high potential to host significant Au-Ag mineralization in a similar structural and geological setting as Blackwater.
Changes in Management and Directors
The Company announces that Mr. Adrian Smith, P.Geo., B.Sc., has been appointed as President. Mr. Smith has been a board member since 2015, is a Professional Geologist and the Company’s qualified person pursuant to NI 43-101. He has worked with mining and exploration companies since 2007, and worked as an underground mine geologist in the Shasta Gold-Silver Mine in Northern BC from 2008 until 2010. He then began work for North American Tungsten Corp. at the Cantung Mine where he was involved in successfully identifying, modelling, and producing ore in addition to known reserves. Since then Mr. Smith has taken his mining and exploration experience from underground and applied it to exploration projects across Canada. Mr. Smith graduated from Simon Fraser University with a Bachelor of Science degree specializing in Geology, and has been a member of APEG BC since 2008.
The Company announces the resignation of Mr. Brett Matich as President and Director of the Company effective today, to pursue other professional interests. The Company wishes to thank Mr. Matich for his contributions to the Company and wishes him all the best in his future endeavors.
Andrew Bowering, Chairman comments, “We welcome Mr. Smith as President of Cap-Ex. We are pleased to see him taking a more active role in the management team at this time, and note in particular that we are confident that Mr. Smith’s professional experience, expertise and knowledge will prove to be valuable as the Company moves to acquire and advance new mineral properties. I also wish to thank Mr. Brett Matich for his contributions to Cap-Ex and wish him the best in his next projects.”
The proposed acquisition of a 90% interest in the Aspen Gold Property is a non-arm’s length or related party transaction as the issued and outstanding shares of the Vendor are controlled by two directors of the Company. The transaction is exempt from the valuation and minority shareholder approval requirements of Ml 61-101 by virtue of the fact that the Company is listed only on the TSX Venture Exchange and by virtue of the small fair market value of the acquisition relative to the Company’s market capitalization. The acquisition is not a business combination as that term is defined in Ml 61-101. The Company’s Board of Directors, when considering a non-arm’s length or related party transaction, requires the interested parties to fully disclose their interest and to abstain from voting on any such transaction.
ABOUT CAP-EX IRON ORE LTD.
Cap-Ex Iron Ore Ltd. is a Canadian listed company, focused on creating shareholder value through discoveries and strategic development of mineral properties in Canada.
CAP-EX IRON ORE LTD.
Andrew Bowering, Chairman
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“This news release may contain forward-looking statements. 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.”
