Boxxer signs Empire Mine amendment - Restructures $1.145m in cash payments to Musgrove
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CALGARY, March 14, 2014 /CNW/ - Boxxer Gold Corp. (TSX Venture: BXX/OTC: BXXRF) ("Boxxer") is pleased to announce today that, together with Konnex Resources, Inc. ("Konnex") a wholly owned subsidiary of Boxxer, it has entered into a letter agreement with Musgrove Minerals Corp. ("Musgrove") (TSX.V: MGS) to amend (the "Amendment") the payment schedule for the Empire Mine Option first announced by Musgrove on April 27, 2012.
Pursuant to the Empire Mine Option, Boxxer and Konnex have already made cash payments to Musgrove of $345,000 and issued 1,150,000 Konnex shares and 2,000,000 Boxxer shares to Musgrove. The new payment schedule and terms as agreed by Boxxer and Musgrove are as follows below:
The Option may be exercised with Boxxer earning a 100% interest in and to the Property by making (i) aggregate cash payments of $100,000 over the next 3 years, (ii) a cash payment of $100,000 on completion of a NI43-101 Pre-Feasibility Study and (iii) an additional cash payment of $250,000 per each 100,000,000 lbs of copper reserves as determined by a NI43-101 Feasibility Study. Boxxer will also be required to issue an additional 6,000,000 shares to Musgrove by April 30, 2014. Musgrove will also no longer have a 2% NSR Royalty.
Jason Riley, EVP of Boxxer comments: "this broad re-negotiation of the terms for the Empire Mine Option reflects the good faith between Boxxer and our partner Musgrove in light of the current junior mining market conditions. By restructuring $1,145,000 in cash payments to Musgrove, Boxxer now has significantly greater flexibility to advance the Empire Mine project forward. We look forward to the eventual return of more favourable market conditions and the exciting next steps on the Empire Mine Project."
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 Empire copper-gold-silver property in Idaho, the DOK copper-gold porphyry property in Northwest B.C., and 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.
For more information on Boxxer please visit our website at www.boxxergold.com or contact Boxxer Gold Corp.
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 exercise of the Empire Project Option Agreement. 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. 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.
SOURCE Boxxer Gold Corp.For further information:
Elmer B. Stewart
President and Chief Executive Officer
Macam Investor Relations
Cam Macdonald or Gord Aldcorn