TORONTO, ONTARIO– (Jan. 14, 2014) - Alexandria Minerals Corporation ("Alexandria" or the "Company") (TSX VENTURE: AZX) (PINKSHEETS: ALXDF) (FRANKFURT: A9D) announced on Jan. 13 that the Company will In 2014 (the "Closing Date") signed and entered into a definitive Project Purchase Agreement (the "Project Purchase Agreement") and 2% NSR Fee Agreement ("NSR" or "Fee") with Agnico Eagle Mines Limited ("Agnico").
Under the terms of the project purchase agreement, Alexandria sold to Agnico for 5.000.000 $ in cash mineral rights to the West Zone gold-copper project, which consists of 14 mining claims in the townships of Bourlamaque and Louvicourt in Quebec. Alexandria will be involved in the production of 210.000 ounces of gold from the relevant claims through an NSR fee at 2%.
Eric Owens, President and CEO of Alexandria Minerals, said: “We are extremely pleased to have sold the claims to Agnico Eagle, a committed and leading international gold producer. In 2010 Agnico made a strategic investment in Alexandria for the first time and took a 10% stake as a partner. We look forward to further expanding our business relationship with this company. This transaction is also confirmation for us that we are on the right track with our involvement in Val d'Or. The region is not only home to gold deposits with several million ounces, but also offers the opportunity to draw values from the smaller deposits and at the same time to advance exploration in the larger deposits. "
The West Zone Project is a new discovery that has been shown to have inferred resources (as per National Instrument 43-101) of 14.863.740 tonnes grading 0,69 g / t Au and 0,41% Cu for 332.074 ounces of gold and 61.255.885 kilograms of copper (estimate by Christian d'Amours of Geopointcom, Val d'Or; see also Alexandria news release dated February 7, 2013).
In addition to the payment of the flat-rate purchase price of 5.000.000 $, the following conditions apply to the sale:
- Alexandria will receive a 210.000% interest in metal production from a production volume of 2 ounces gold through an NSR fee
- Agnico is entitled to repurchase half of the fee stake, i.e. 1%, from Alexandria for approximately $ 7.000.000 and also has the right of first refusal for the remaining 1% NSR fee
- Agnico is responsible for the existing fees with which the claims are charged
- Alexandria is entitled to be the first to submit an offer to buy back the claims for $ 1 after the production operation has been closed and recultivated
As a result of the sale, Alexandria has approximately $ 6 million in working capital and is continuing exploration work in its large Cadillac Break concession package of diamond drilling and geophysical surveys
Alexandria is looking forward to 2014
The West Zone claims represent 2% of Alexandria's Cadillac Break property package. Alexandria retains 662 claims out of a total of 676 claims extending on either side of the Cadillac Break tectonic zone. The property package is one of the largest, most prospective, least explored and contiguous mineral properties in the Val d'Or region. Alexandria owns the claims east of the West Zone on which the Akasaba Mine is located. This is where the company first started drilling on the project site.
The Company is currently conducting a drill program on 10.000 Meter. The first phase of the program focused on the Valdora property north of Akasaba and is used to explore target areas similar to Akasaba. Drilling has commenced in the North Zone of Akasaba, where four holes are drilled at shallow depths to explore disseminated mineralization near the surface. The results are not available yet.
Alexandria will then drill on its Sleepy project 15 km east of Akasaba. The company will step out drilling both below and east of the Inferred Resources (1,5 million tonnes grading 3,0 g / t gold - estimated by Christian d'Amours of Geopointcom; see October 29, 2009 news release).
For the past two years, the company has had fairly great success with small-scale stepout drilling. Diamond drill hole SAX-11-009 intersected a -16,96 meter (true width, "TW") section at 6,82 g / t Au and hole SAX-13-025 intersected a 13,31 meter section 3,83 g / t Au and, separately, intersected a 2,65 m TW section at 6,92 g / t Au (press releases dated September 8, 2011 and May 15, 2013). Alexandria believes that Sleepy has enormous resource potential.
Alexandria has also initiated a large scale geophysical survey program in its Valdora, Akasaba, Annamaque, Oramaque, Sabourin and Ducros projects, consisting primarily of IP measurements. The surveys cover large parts of the western half of the Cadillac Break concessions and will provide the company's geologists with further decision support for the selection of future drilling targets.
For more information, visit the company's website at www.azx.ca or visit our social media pages below:
Facebook: https://www.facebook.com/pages/Alexandria-Minerals-Corporation-AZXTSXV/186115074772628
Twitter: https://twitter.com/azxmineralscorp
YouTube: http://www.youtube.com/AlexandriaMinerals
Flickr: http://www.flickr.com/alexandriaminerals/
Eric Owens (PGeo) and Emilie Batailler (PGeo) reviewed the contents of this news release. All exploration work on the project site will be carried out directly under the supervision of Mr. Batailler. Alexandria's Quality Control is in line with NI 43-101 and industry-standard regulations, and has been included in the February 43 NI 101 2008 Technical Report on the Cadillac Break Property and in subsequent NI 43-101 compliant reports published on the Company website or on www.sedar.com.
About Alexandria Minerals Corporation
Alexandria Minerals Corporation is a Toronto-based junior gold exploration and development company that owns one of the largest concession portfolios along the well-known Cadillac Break gold mining area in Val d'Or, Quebec. In general, the gold resources are spread between three projects on the Cadillac Break concession: Akasaba, Sleepy and Orenada. Details can be found on the company's website (www.azx.ca). Agnico Eagle Mines Limited has a close to 9% stake in the region with three gold producers in the region.
PRECAUTIONARY NOTICE: This news release may contain forward-looking statements. Forward-looking statements relate to future events and circumstances and are therefore typically subject to risks and uncertainties. Actual results may differ materially from those anticipated in such statements. Alexandria Minerals Corporation relies on its legal protection for forward-looking statements. The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
Alexandria Minerals Corporation
Mary Vorvis
Corporate Development Director
(416) 305-4999
Alexandria Minerals Corporation
Eric Owens, PGeo
President / CEO
(416) 363-9372
www.azx.ca
No liability is assumed for the accuracy of the translation! Please note english original message!
Source: IRW-Press.com.
