Vancouver, BC – February 05, 2013 – Corex Gold Corp. (the “Company”) is pleased to announce that it has finalized the Agreement (the “Agreement”) with a wholly-owned subsidiary of Vale S.A. (“Vale”), wherein Vale may acquire up to a 65% interest in the Company’s Santana Project by making work expenditures of $16,000,000. The objective of this alliance is to further develop the copper-gold porphyry target on the Santana Project, in Sonora State, Mexico.
Terms of the Agreement:
Vale has the option to acquire up to a 51% interest in the Santana Project (the “First Option”) by making the following aggregate minimal exploration expenditures of $8,000,000 over a 3 year term:
Year | Exploration Expenditure Work |
1* | $2,000,000 |
2 | $2,500,000 |
3 | $3,500,000 |
Total | $8,000,000 |
* Year 1 expenditures are committed (“Committed Expenditures”), Vale may at its option terminate the Letter Agreement at any time after completing the Committed Expenditures.
Vale is required to make an initial cash payment of $100,000 to be credited towards the expenditures in Year 1 and at its option Vale may make a further cash payment of $100,000 to be credited towards the expenditures in Year 2.
Vale may at its option, earn an additional 9% (the “Second Option”) by making the following expenditures during the subsequent 18 months after year 3 (“Second Option Period”):
Year | Exploration Expenditure Work |
4 and 1st 6 months of year 5 | $4,000,000 |
Additionally, Vale at its option may earn a further 5% (the “Final Option”) by making the following expenditures during the subsequent 18 months after the Second Option Period:
Year | Exploration Expenditure Work |
2nd 6 months of year 5 and year 6 | $4,000,000 |
“We are very pleased to have a Company such as Vale as a strategic partner to further advance the Santana Property to its next phase of development, and unlock the project’s porphyry potential”, reported Craig Schneider, President and CEO of Corex.
About Vale S.A.
Vale is one of the largest metals and mining company in the world and the largest in the Americas based on market capitalization. It is the world’s largest producer of iron ore and iron ore pellets and the world’s second largest producer of nickel. Vale also produces manganese ore, copper, thermal and coking coal, phosphates, potash, cobalt and platinum group metals. To support Vale’s growth strategy, the company is actively engaged in mineral exploration efforts in several countries around the globe.
About Corex Gold Corp
Corex Gold Corp is a Canadian resource company focused on the acquisition, exploration, and development of precious/base metal deposits in Mexico including its 100% owned flagship property, the Santana Project, which is in Sonora State, Mexico. In addition, Goldcorp Inc. has implemented an on-going exploration program on Corex’s 100% owned Zuloaga property in Zacatecas State, Mexico.
ON BEHALF OF THE BOARD
“Craig D. Schneider”
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Craig Schneider,
President & CEO
Tel: 604.683.2505
Fax: 604.683-2506
E-mail: [email protected]
Website: www.corexgold.com
Cautionary Statement:
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. This news release may contain forward-looking statements relating to future exploration and expenditures on the Company’s properties and holding of a shareholder meeting. Forward-looking statements, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include management’s re-allocation of resources, failure of the parties to meet the other conditions to the option agreement and the other factors detailed from time to time in Corex Gold Corp.’s filings with the appropriate securities commissions. Other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information contained herein.
