Initial step in proposed "spin-off" of Impact Iron Mines to Argex
MONTREAL, Nov. 28, 2011 /CNW Telbec/ - Argex Mining Inc. announced today that its Board of Directors has unanimously approved the
sale by Argex of the Mouchalagane iron ore property to Impact Iron
Mines Inc., Argex's wholly-owned subsidiary.
Argex President and CEO, Roy Bonnell, commented as follows, "The
Mouchalagane property is an undeveloped iron ore property in the
Fermont-Labrador City mining district with significant near-term
mineral resource potential. Our focus is to unlock the value of this
asset for Argex's shareholders. The sale of the Mouchalagane property
to Impact Iron Mines is the first step in the spin-off process to
create two public companies: Argex as a titanium dioxide pure-play and
Impact as a pure iron ore company."
On September 26, 2011, Argex reported on the overall conceptual
exploration potential of the Mouchalagane property as ranging between
940 million tonnes and 2.31 billion tonnes of magnetite and
hematite-rich mineralization at a grade of 30% to 35% Fe total. The
exploration information of potential quantity and grade is conceptual
in nature; there has been insufficient exploration to date to define a
mineral resource and it is uncertain if further exploration will result
in the target being delineated as a mineral resource.
Exploration work conducted on the Mouchalagane property in the 1950's,
60's and 70's, consisting of mapping, ground geophysics, diamond
drilling and metallurgical testing, successfully identified numerous
magnetite and hematite-rich iron formations on the property. Iron
formation thicknesses reported from drill holes vary from a few metres
to more than a hundred metres, with average grades ranging from 25% Fe
total to 42% Fe total. Extensive metallurgical testing of the
magnetite-rich and hematite-rich facies completed on surface samples
and drill core composites returned concentrate grades between 65% and
71% Fe total.
In connection with the proposed sale of the Mouchalagane property to
Impact Iron Mines, Argex will receive 10 million common shares of
Impact Iron Mines at a deemed price of $1.00 per share, and a cash
payment of $2 million. In the event that a resource estimate compliant
with National Instrument 43-101 demonstrates at least 100 million
tonnes of net iron content on the Mouchalagane property, Argex will
receive an additional 5 million common shares of Impact Iron Mines.
Argex also has the right to receive the following payments from Impact
Iron Mines: (i) $10 million upon initial shipment of 2 million tonnes
of iron concentrate from the Mouchalagane property; (ii) an additional
$20 million upon shipment of an additional 5 million tonnes of iron
concentrate from the property; and (iii) an additional $30 million upon
shipment of an additional 8 million tonnes of iron concentrate from the
Argex intends to distribute to its shareholders the 10 million common
shares of Impact Iron Mines which it will receive as consideration for
the sale of the Mouchalagane property.
After the share distribution, it is not expected that Argex will hold
any shares of Impact Iron Mines, except for the 5 million shares to be
issued to Argex conditional upon an NI 43-101 compliant resource
estimate demonstrating at least 100 million tonnes of net iron content
on the Mouchalagane property.
The sale of the Mouchalagane property to Impact Iron Mines and the
proposed share distribution to Argex's shareholders are subject to a
number of conditions, including the signing of a definitive agreement,
and regulatory approval, including that of the TSX Venture Exchange.
The final details of the proposed distribution of the shares of Impact
Iron Mines to Argex's shareholders, including the record date for the
share distribution and the share distribution ratio, have yet to be
determined and will be announced by Argex as soon as practicable.
The Mouchalagane Property
The Mouchalagane property is located 275 km north of the city of
Baie-Comeau, Québec, adjacent to the Manicouagan Reservoir. The
property is composed of one block of 637 designated claim cells
covering 335 square kilometres and is 100% owned by Argex.
The Mouchalagane property covers extensive iron formation stratigraphy
known as meta-taconites, which are interpreted to be part of the
prolific Wabush Geological Formation hosting the major iron ore
deposits of the Fermont-Labrador City region. A 2,447 line-km airborne
geophysical survey completed by Argex at the end of 2010 highlighted
several magnetic anomalies representing more than 50 km of iron
formation stratigraphy on the property.
On September 20, 2011, Argex filed an updated NI 43-101 Technical Report
on the Mouchalagane property. The report is available on Argex's
website at www.argex.ca and on SEDAR at www.sedar.com.
The technical information disclosed in this news release has been
reviewed and approved by André Laferrière, P.Geo., the Qualified Person
for Argex, as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Argex Mining Inc.
ARGEX MINING INC. has recently transitioned from a mining exploration
company to a near-term producer of commodities that the world needs:
Titanium Dioxide, Iron and Vanadium Pentoxide. With a primary goal of
advancing rapidly towards production, Argex has adopted a simple and
low-risk strategy for the scale-up of its proprietary process that
allows it to produce high purity TiO2 directly from its 100% owned deposit.
The process is running continuously at the mini-plant in Mississauga,
Ontario. The closed-loop process is environmentally friendly and
produces minimal inert tailings.
Additionally, the Company owns 100% of the Mouchalagane property, which
is a large Labrador Trough iron ore property that represents further
potential upside for the Argex shareholders.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the
meaning of applicable securities laws. All information and statements
other than statements of historical facts contained in this press
release are forward-looking information. Such statements and
information may be identified by words such as "about",
"approximately", "may", "believes", "expects", "will", "intends",
"should", "plans", "predicts", "potential", "projects", "anticipates",
"estimates", "continues" or similar words or the negative thereof or
other comparable terminology. Forward-looking statements are based on
the best estimates available to Argex at this time and involve known
and unknown risks, uncertainties and other factors that may cause
Argex's actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. A description
of the risks affecting Argex's business and activities appears under
the heading "Risk Factors" in Argex's Amended and Restated Annual
Information Form dated January 14, 2011 for the fiscal year ended
December 31, 2009, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the
forward-looking information in this press release will transpire or
occur, or if any of them do so, what benefits that Argex will derive
therefrom. In particular, no assurance can be given as to the future
financial performance of Argex. The forward-looking information
contained in this press release is made as of the date hereof and Argex
undertakes no obligation to publicly update such forward-looking
information to reflect new information, subsequent or otherwise, unless
required by applicable securities laws. The reader is warned against
placing undue reliance on these forward-looking statements.
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 ARGEX MINING INC.
For further information:
| Roy Bonnell, President and Chief Executive Officer |
Argex Mining Inc.
| || Argex Mining Inc. |
| || || |
| MEDIA: |
Frédéric Bérard, Vice President
HKDP Communications and Public Affairs
514 395-0375, ext. 259