Temex agrees to sell minority stake in Hornby and Pender Properties


TORONTO, Aug. 18 /CNW/ - Temex Resources Corp. (TSX-V: TME, FWB: TQ1) ("Temex" or "the Company") announces that it has negotiated terms for the sale of its minority interest in the Hornby and Pender Properties ("the Properties") in the "Ring of Fire" area of northern Ontario to MacDonald Mines Exploration Ltd. ("MacDonald", TSX-V: BMK). In return for its 45.59% interest in the Properties, Temex will receive 1,000,000 shares of MacDonald and also 1,000,000 share purchase warrants as detailed below.

The Company believes the transaction provides it with a significant number of shares and a significant number of warrants to purchase additional shares in one of the most committed explorers in the "Ring of Fire" thereby providing further exposure through an equity stake in MacDonald. If Temex were to fully exercise the warrants, and based on the number of shares currently reported to be outstanding, Temex would hold approximately 1.25% of the outstanding shares of MacDonald. The Hornby Property is located contiguous to the KWG/Spider/Cliffs "Big Daddy" chromite deposit. MacDonald and Temex believe the Hornby Property has potential to host the extension of the Big Daddy deposit.

The Company continues to be one of the largest landholders in the Ring of Fire with its primary focus being to advance its more developed precious metal projects in the Abitibi Greenstone Belt, particularly its Whitney Gold Project in the heart of the Timmins Gold Camp and the Juby Gold Project in the Shining Tree area 100 kilometres to the south (www.temexcorp.com for further information).

Agreement Details

Temex has agreed to sell its interest (45.59%) in the Hornby and Pender Properties to MacDonald for the following:

    -   1,000,000 common shares of MacDonald

    -   500,000 common share purchase warrants with each warrant entitling
        Temex to purchase one common share of MacDonald at a price of
        $0.25/share for a 24 month period

    -   500,000 common share purchase warrants with each warrant entitling
        Temex to purchase one common share of MacDonald at a price of
        $0.40/share for a 24 month period

Upon full payment of the above, MacDonald will own 100% of the Properties and Temex will have no further interest, title or obligations in the Properties and the Joint Venture agreement related to these Properties dated September 10th, 2007 will be terminated.

The agreement is subject to all necessary regulatory approvals and all securities issued in connection with this transaction are subject to a 4 month and 1 day hold period from date of issuance. The agreement has been approved by the Board of Directors of both Temex and MacDonald.

Ian Campbell, P. Geo., President and CEO of the Company, is the designated "qualified person" (within the meaning of National Instrument 43-101) responsible for the preparation of this news release.

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 project, the Timmins Gold Project, and specifically the property known as Whitney, in partnership with Goldcorp. This property has historically produced over 2.3 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 is also working to advance its 100% owned Juby Gold Project, one component of which is the Juby Lease Property 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 Company maintains a number of early stage projects with considerable 'Blue Sky' potential in its portfolio.

Forward-Looking Statements:

This news release includes certain "forward-looking statements". Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. 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.

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.

%SEDAR: 00005513E

SOURCE Temex Resources Corp.

For further information: For further information: please visit www.temexcorp.com or email: info@temexcorp.com or phone: 416-862-2246, toll free: 866-373-6287

Organization Profile

Temex Resources Corp.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890