Boxxer announces acquisition of Konnex Resources
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CALGARY, Sept. 3, 2013 /CNW/ - Boxxer Gold Corp. (TSX Venture: BXX/OTC: BXXRF) ("Boxxer" or the "Corporation") announced today that, further to the press releases dated July 4, 2013, July 23, 2013 and August 26, 2013, it has acquired all of the issued and outstanding shares (the "Acquisition") of Konnex Resources Inc. ("Konnex"). The Acquisition closed in escrow on August 30, 2013, pending certain closing deliverables, and is subject to TSX Venture Exchange final approval. Pursuant to the Acquisition, Boxxer issued an aggregate of 51,528,750 common shares of Boxxer ("Boxxer Shares") to the former holders of common shares of Konnex ("Konnex Shares"), on the basis of five (5) Boxxer Shares for every one (1) Konnex Share. 24,360,000 of these Boxxer Shares, held by the former principals of Konnex, are held in escrow pursuant to the terms of an escrow agreement, which provides for the release of those Boxxer Shares, as to 25% on each of the 6, 12, 18 and 24 month anniversary of the closing date of the Acquisition.
It is anticipated that upon the termination of the closing escrow of the Acquisition, Jason Riley, the former President, CEO and a director of Konnex, and Dennis Thomas, a former director of Konnex, will be appointed to the Board of Directors of Boxxer.
In connection with the Acquisition, Boxxer paid a finder's fee in the amount of 1,833,000 Boxxer Shares, which shares are subject to a four month hold period that expires on December 31, 2013.
Boxxer's President and CEO, Elmer B. Stewart, explained; "We are very pleased with the acquisition of Konnex and look forward to working with its management team going forward. Konnex brings a considerable amount of mineral industry expertise to Boxxer's board of directors. Konnex is the first acquisition in keeping with Boxxer's corporate strategy of exploration of its existing copper projects, along with the acquisition of junior resource companies, thereby taking advantage of the market opportunities now available in North America".
Konnex Resources Inc:
Konnex is a private Canadian metals exploration company that seeks to identify and acquire undervalued projects located in low risk jurisdictions. Konnex has a highly experienced board and management team with collectively over 100 years of experience in exploration, development, mine management, and project sourcing worldwide.
Konnex's main asset is an option on the Empire Mine, a former copper-gold-silver producer located within the Alder Creek mining District, 5.5 kilometers southwest of the town of Mackay in central Idaho. The property consists of 23 patented mineral claims, 21 unpatented mineral claims and five unpatented mill-site claims covering a contiguous 301 hectares (743.7 acres) (the "Empire Project"). For further information on Konnex and the Empire Project, please refer to Boxxer's July 4, 2013 press release.
About Boxxer Gold Corp.
Boxxer is a Canadian junior resource company involved in the exploration for large polymetallic copper deposits in North America. Boxxer's active projects include 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 Gordon Lake gold project located 110 kilometres north of Yellowknife NWT, Canada.
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.
Forward-Looking Information: 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. In particular, this press release contains forward looking information in relation to the completion of the transactions disclosed herein and the corporate strategy of Boxxer. There is no certainty that all regulatory approvals for the Acquisition will be received. In addition, there is no certainty that Boxxer will exercise its option on the Empire Project and there is no certainty that additional exploration will identify additional exploration targets or expand the dimensions of known zones of mineralization on the Empire Project. For any forward-looking information given, Management has assumed that the results it has received and reviewed in relation to the Empire Project and the interpretation thereof are reliable, and has applied geological and geophysical interpretation methodologies which are consistent with industry standards. There is no certainty that Boxxer will be able to implement or achieve its corporate strategy or that the changes to the board of directors may not be implemented as stated and the work required to identify other junior resource companies in North America for acquisition may not identify a suitable target or that if a suitable target is identified, the target may not be available for acquisition on terms suitable to the Company. Although Management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such forward-looking information. 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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Boxxer Gold Corp
John L. Maslanyk
Vice President & Chief Information Officer
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