MARKHAM, ON, Aug. 31 /CNW/ - China Nonferrous Metals Exploration Corp.
("CNME") announced today that it has purchased through a private placement
8,100,000 common shares of Murgor Resources Inc. ("Murgor") at CAD$0.10 per
share, representing 14.95% of the issued and outstanding common shares of
Murgor as at August 31, 2009, in accordance with the minimum amount investment
exemption provided under Section 2.10 of National Instrument 45-106
(Prospectus and Registration Exemptions).
Following the private placement there will be 54,168,782 common shares of
Murgor issued and outstanding. The private placement shares have a four month
hold period ending January 1, 2010.
The common shares of Murgor were acquired by CNME for investment
purposes. CNME may, from time to time, acquire additional common shares of
Murgor, dispose of some or all of such common shares or may continue to hold
such common shares.
The Subscription Agreement between Murgor and CNME provides that in the
event that Murgor in future issues any common shares or securities convertible
into common shares, CNME has the right, subject to limited exceptions, to
purchase such securities on a pro rata basis, so that CNME may maintain its
14.95% interest in Murgor. Murgor and CNME have also entered into a Board
Representation Agreement under which CNME has the right to designate a person
to serve on Murgor's Board of Directors. Murgor expects that CNME will shortly
designate a person to serve on Murgor's Board. Any person designated by CNME
must be acceptable to Murgor, acting reasonably. CNME's right to subscribe for
shares and its right to designate a person to sit on Murgor's Board will
terminate if CNME holds less than 5% of Murgor's outstanding shares.
About China Nonferrous Metals Exploration Corp.
CNME is a Canadian corporation majority-owned by Chinese shareholders,
including Beijing Donia Resources Co ("Donia"), a state owned entity whose
mandate includes exploring for base metal resources worldwide. The Chairman of
Donia, Dr. Jingbin Wang, also serves as Executive Director of the China
Nonferrous Metals Resource Geological Survey, President of the Beijing
Institute of Geology of Mineral Resources, President of Sinotex Mineral
Exploration Co, Vice-President of the China Nonferrous Metals Industry
Association and Assistant Director of the China Geology Association. Donia's
General Manager, Mr. Side Wang, also serves as Vice-Director of the Mineral
Resources Management Committee of the China Mining Association.
CNME seeks to invest in mineral exploration and development opportunities
in Canada. Its principal office is located at 7-145 Riviera Drive, Markham,
Ontario, L3R 5J6.
About Murgor Resources
Murgor Resources Inc. (MGR: TSX-V) is a mineral exploration and
development company focused on copper, zinc and gold deposits. The company is
earning a 100% interest in three deposits, adjacent to the Snow Lake and Flin
Flon mining districts of Manitoba, from HudBay Minerals Inc. (TSX:HBM). Murgor
is also exploring an exceptional portfolio of gold properties in proven mining
districts of Canada, owns a 1% NSR royalty in the Barry Gold Mine and an
interest in the advanced Windfall Gold Project in Quebec.
For further information:
For further information: Lee Ing at (905) 968-1196