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ExGen Signs Option With Phoenix on High Grade AU Project Gordon Lake, Riley to Join Phoenix Board
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, British Columbia, March 01, 2018 (GLOBE NEWSWIRE) -
About this update from Exgen Resources Inc.
[{"type":"text","content":" NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, British Columbia, March 01, 2018 (GLOBE NEWSWIRE) -- ExGen Resources Inc. (TSX.V:EXG) (OTC:BXXRF) (“ExGen”) is pleased to announce today that, subject to TSX Venture Exchange approval, it has entered into an option agreement (the “Option”) with Phoenix Global Mining Ltd., a London AIM listed mining company focused on base and precious metals development in North America (“Phoenix”) to earn an 80% interest in our high grade gold Gordon Lake project located in the Northwest Territories (“Gordon Lake”). Project Participation ExGen to retain a 20% carried interest until commencement of mine construction ExGen to be granted a 2.5% net smelter returns royalty for all metals on Gordon Lake (the “2.5% NSR”) 30 mile area of interest, which applies to both ExGen’s 20% carried interest and the 2.5% NSR Cash and Shares ExGen to be paid a cash payment of US $25,000 on signing the Option ExGen to be issued 2,000,000 common shares of Phoenix within 30 days of signing the Option ExGen to be paid US $25,000 on the first 2 anniversary dates of the signing of the Option and then US $50,000 on the anniversary date of the signing of the Option until the completion of a bankable feasibility study Project Spend by Phoenix Phoenix to spend US $250,000 on Gordon Lake within 12 months of signing the Option Phoenix to fund all Gordon Lake Project property maintenance and sustaining costs Deal Protection and Corporate Structure After earning in, should Phoenix sell its 80% interest in Gordon Lake prior to the commencement of commercial production, ExGen shall have the right but not the obligation to sell its 20% interest in Gordon Lake on the same terms as Phoenix Alternatively, ExGen can elect to convert its 20% interest to a fully carried interest in Gordon Lake Jason Riley to join the board of directors of Phoenix, effective February 28, 2018 The Option is subject to TSX Venture Exchange approval. Mr. Jason Riley, CEO of ExGen commented: “Our experience with the Phoenix team on Empire has been truly exceptional and we are delighted to expand our relationship to another partnership on Gordon Lake. We look forward to the next steps for Gordon Lake and delineating the initial 12 month work program. This is shaping up to be an exciting year for ExGe...