Boxxer enters letter of intent to acquire 23 mineral claims contiguous to East Breccia copper-molybdenum-silver property
CALGARY, Aug. 3, 2012 /CNW/ - 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.
Mountain Breccia Property (4,269.9 acres):
|a)||Exploration target is copper-molybdenum mineralization hosted in a breccia pipe,|
|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,|
|c)||Widespread copper+/-molybdenite mineralization reported in historical drill logs, and|
|d)||Six similar anomalies defined by 2009 VTEM survey.|
Tribag Property (2,728.0 acres):
|a)||Hosts the South Breton Breccia immediately adjacent to the former Tribag copper mine,|
|b)||The exploration target is copper-molybdenum mineralization hosted in breccia pipes,|
|c)||The property covers the northeast extension of the West Breccia zone of mineralization,|
|d)||Mineral claims surround the former Tribag copper mine, and|
|e)||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:
|a)||Issuing 2.4 million common shares of Boxxer to purchase the Tribag property,|
|b)||Issuing 2.0 million common shares of Boxxer to purchase the Mountain Breccia property,|
|c)||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,|
|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),|
|e)||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.
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