TORONTO, June 29 /CNW/ - Further to its April 15, 2010 news release, Temex Resources Corp. (TSX-V: TME, FWB: TQ1) ("Temex" or "the Company") announces the entering into of a joint venture agreement (the "Joint Venture Agreement") with Goldcorp Canada Ltd. ("Goldcorp") (as manager, and on behalf, of the Porcupine Gold Mines Joint Venture (a joint venture between Goldcorp Inc. and Goldcorp)) for the exploration and evaluation, and if feasible, the development and mining of mineral resources on certain properties, including those properties which Temex has acquired an undivided 60% interest in pursuant to its option agreement with the Porcupine Gold Mines Joint Venture, as well as the upper portion of the Hallnor Mine Property (the "Upper Hallnor Mine Property"), which Temex has acquired an interest in pursuant to the Joint Venture Agreement.
"This joint venture agreement on the Whitney Township gold property consolidates our position on the Hallnor Mine, enabling us to aggressively advance it and the adjacent Bonetal and Broulan Reef Mine properties with a world class partner in Goldcorp," said Ian Campbell, President and CEO of Temex. "Collectively the properties have historically produced over 2.3 million ounces of high grade gold and we believe tremendous potential exists to delineate high grade gold resources on all the properties. Furthermore, the properties are situated on 4.2 kilometres of prime exploration ground along and north of the Porcupine-Destor fault where the vast majority of production has come from Canada's largest gold camp, Timmins, which has production of over 70 million ounces of gold to date. We are fully financed for our initial program and expect to begin within two weeks."
Under the terms of the Joint Venture Agreement, Temex acquired an undivided 60% interest in the mining rights (from the surface to a depth of 1,000 feet below the surface) to those parts of certain patented properties commonly known as the Upper Hallnor Mine Property, other than for mining rights in and to certain parts of the Upper Hallnor Mine Property. The Company's acquisition of its 60% interest in the Upper Hallnor Mine Property, together with its existing 60% interest in the lower portion of the Hallnor Mine Property, consolidates this historic gold property, which was the highest grade gold mine of those that have produced more than 1 million ounces in the Timmins camp as well as the adjacent Broulan Reef and Bonetal Mine properties.
The purchase price of $1.25 million for the acquired interest in the Upper Hallnor Mine Property will be satisfied in two instalments. The first payment of $625,000 was required to be made upon execution of the Joint Venture Agreement. Temex elected to satisfy the initial payment by issuing an aggregate of 2 million common shares. The second payment of $625,000 is required to be made on or before the first anniversary of the Joint Venture Agreement. Temex has the option to satisfy the final payment in cash or by issuing an aggregate of 2 million common shares. The purchase price is allocated as to 51% to the account of Goldcorp and 49% to the account of Goldcorp Inc.
Pursuant to the Joint Venture Agreement, Temex has been appointed as the Operator with overall responsibility to manage and carry out operations under the Joint Venture Agreement. A minimum joint work program totalling $8.33 million will be undertaken over a 5 year period. Temex has agreed to fund a total of $5 million in exploration expenditures prior to the end of the fifth anniversary of the Joint Venture Agreement. Any shortfall in exploration expenditures that is not made up by Temex by the fifth anniversary of the Joint Venture Agreement will become payable to Goldcorp on demand. The initial participating interests of Temex and Goldcorp of 60% and 40%, respectively, are subject to dilution in accordance with the terms of the Joint Venture Agreement and conversion to a royalty interest (net smelter return) in the event that any such participating interest is reduced to 10% or less.
As part of the Joint Venture Agreement, Temex will be required to contribute, to a maximum of $5 million, towards the reclamation, remediation and other costs under a closure plan for all previous activities on the upper and lower portions of the Hallnor Mine Property in proportion to its participating interest in the properties subject to the Joint Venture Agreement. Upon Temex having incurred the cumulative aggregate expenditures of $5 million noted above, Temex will be deemed, pursuant to the Joint Venture Agreement, to have contributed $2 million towards such costs.
About Temex Resources Corp.
Temex is a Canadian based exploration company focusing on its portfolio of precious metals properties in northeastern Ontario, a world class mining district. The properties are located within the world-renowned Abitibi greenstone belt, some in proximity to the Porcupine-Destor Fault Zone. Temex's strategy is to focus on developing its flagship gold property, the Timmins Gold Project, and specifically the property known as Whitney Township. This property has historically produced over 2.5 million ounces of gold and contains the Hallnor Mine, the highest grade past producing multi-million ounce gold deposit in Canada's largest gold camp. Temex will also advance its Juby Gold Project which contains a National Instrument 43-101 Indicated resource of 614,000 ounces of gold and an Inferred resource of 602,000 ounces of gold (news release June 15, 2010), the Gowganda Silver Project and Latchford Gold Project.
Forward Looking Statements:
This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the Company's expectation to aggressively develop the properties subject to the Joint Venture Agreement, planned exploration of the upper and lower portions of the Hallnor Mine Property, as well as the expected timing thereof, potential mineralization and plans and objectives with respect to the exploration of the Hallnor Mine Property) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the Company's failure to develop the properties subject to the Joint Venture Agreement, the possibility that future exploration results will not be consistent with expectations, changes in equity markets, changes in gold markets, changes to regulations affecting exploration or development activities, uncertainties relating to the availability and costs of financing needed in the future, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting geological data and the other risks involved in the gold exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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.
SOURCE Temex Resources Corp.
For further information: For further information: please visit www.temexcorp.com or email: email@example.com or phone: 416-862-2246, toll free: 866-373-6287