CALGARY, Oct. 31, 2012 /CNW/ - Boxxer Gold Corp. (TSXV: BXX; OTC: BXXRF) ("Boxxer" or the "Company") is pleased to announce that it has acquired 23 mineral claims covering 6,997.9 acres (the "Properties") contiguous to its East Breccia copper-molybdenum-silver property located approximately 60 kilometres north of Sault St Marie, Ontario (the "Transaction") from a partnership of three Ontario individuals (the "Vendors"). The transaction was completed by issuing an aggregate of 4.4 million shares of Boxxer's common stock, subject to TSX approval.
Mountain Breccia Property (4,269.9 acres):
Tribag Property (2,728.0 acres):
Boxxer's President and CEO, Elmer B. Stewart, explained; "We are pleased to have concluded this acquisition because these land packages add significant value to our East Breccia property. Based on our drilling program in 2012 and the historical information we have acquired on these lands, we feel that this purchase adds a lot of value to the company and represents a significant potential upside."
Purchase Agreement Highlights:
Pursuant to the terms of the Transaction, Boxxer has purchased a 100% interest in the Mountain Breccia property and the Tribag property (subject to the below NSR payable to the Vendors) for the following consideration:
|a)||Issuing 2.4 million common shares of Boxxer to purchase the Tribag property,|
|b)||Issuing 2.0 million common shares of Boxxer to purchase the Mountain Breccia property,|
|c)||Boxxer has, subject to certain conditions, a right of first refusal to purchase certain other mineral claims from the Vendors covering the former Tribag copper mine,|
|d)||Payment of shares (the "Bonus Payments") in the then operating company equal to $1 million in value at the time when a bankable feasibility study is completed on the Mountain Breccia and/or the Tribag properties (for greater certainty, only one Bonus Payment will be made for the first bankable feasibility study completed on each of the Mountain Breccia and Tribag properties for a maximum of two Bonus Payments if bankable feasibility studies are completed on each of the Mountain Breccia and Tribag properties),|
|e)||A 2% Net Smelter Return ("NSR") to the Vendors, of which Boxxer has the right to repurchase 1% of the NSR at any time for a cash payment to the Vendors of $1,200,000.|
|f)||Acquisition of 23 contiguous mineral claims for an additional 6997.9 acres of land. The Tribag Package of mineral claims surrounds the former producing Tribag mine.|
About Boxxer Gold Corp.
Boxxer is a Canadian junior resource company involved in the exploration of 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 Crescent Peak gold-silver project in Nevada and the Gordon Lake gold project located 110 kilometres north of Yellowknife NWT, Canada.
Elmer B. Stewart, MSc. P. Geol., President of Boxxer Gold, is the Company's nominated Qualified Person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, and has reviewed the technical information disclosed in this news release.
On behalf of the Board of Directors
Elmer B. Stewart P. Geol. MSc.
President and CEO
Neither 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 Statements: 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. There is no certainty that the proposed Transaction will be completed or that a definitive agreement for the proposed Transaction will be executed, that exploration of the Properties would result in the discovery of additional mineralization or that the reported historical diamond drilling results can be verified or that the proposed transaction would be completed. For any forward-looking information given, Management has assumed that a standard definitive agreement can be negotiated with the Vendors and that the results it has received 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 statements. 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:
For more information on Boxxer please visit our website at www.boxxergold.com or contact:
Boxxer Gold Corp
John L. Maslanyk
Vice President & Chief Information Officer
Toll Free: 1-888-479-3596
Macam Investor Relations