Corex Announces an Agreement With H Morgan & Company to Move Santana Towards Commercial Production
June 23 2014 - 12:07PM
Marketwired
Corex Announces an Agreement With H Morgan & Company to Move
Santana Towards Commercial Production
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 23, 2014) -
Corex Gold Corporation (the "Company") (TSX:CGE) is pleased to
announce that it has entered into a letter agreement (the
"Agreement") with H. Morgan & Company ("Morgan") to provide
financing of up to $1.65 million and to provide operational and
management services in regards to the Company's Santana property
(the "Santana Property" or the "Property"), with the intent of
moving the company into production. The 100% owned Santana property
is located in the State of Sonora, Mexico.
The Agreement calls for Morgan to provide Corex with financing
in two tranches, with the first tranche of $400,000 to be advanced
upon satisfactory completion of due diligence and agreement upon
the final form of written agreements by Morgan. The second tranche
of $1,250,000 will be advanced following satisfactory completion of
the initial work program and at the sole discretion of Morgan. Each
financing tranche will be structured as a private placement with
the first tranche consisting of 4,000,000 units of the Company to
be issued at a purchase price of $0.10 per unit. Each unit will
consist of one common share and one warrant exercisable into an
additional common share for a period of two years at an exercise
price of $0.15 per share.
The second tranche will consist of units to be issued at a price
equal to the maximum allowable discount pursuant to the rules of
the TSX Venture Exchange (the "Exchange") as of the date of
issuance, each unit consisting of one common share and one warrant
exercisable for a period of five years from the date of issuance.
Each financing tranche is subject to the acceptance of the
Exchange. The Agreement requires that the proceeds of the financing
be used solely with respect to exploration and development of the
Santana Property, or maintenance payments on same.
The Agreement also provides that Morgan will manage feasibility
work on the property with the objective of advancing the Property
into commercial production. As such, Corex, pursuant to the terms
of a written agreement (the "Management Agreement"), will appoint
Morgan's corporate partner, Minas de Guachinango S.A de C.V., a
Mexico corporation (the "Manager") as the manager over the
activities to be conducted on the Property. The Management
Agreement will be terminated upon the earlier of the Manager's
resignation and termination of the Management Agreement or
following the commencement of profitable commercial production at
the Property.
Pursuant to the terms of the Agreement, Corex has additionally
granted to Morgan a participation right with respect to any future
equity or convertible debt financing while the Management Agreement
is in force and a right of first refusal with respect to any
financing required in order for the Property to be made profitable
after the completion of a phase 2 work program.
Mr. Craig Schneider, President & CEO of Corex, stated,
"Chester Millar, the founder of Glamis Gold, Eldorado Gold, Alamos
Gold, and more recently Castle Gold (now Argonaut Gold) is an
investment advisor to Morgan. As such, we are very pleased to have
access to a person of Mr. Millar's experience and expertise
involved with the operations of our Santana property en route to
one day potentially being a production based asset."
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
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. The foregoing information may contain
forward-looking statements relating to the future performance of
Corex Gold Corp., including statements relating to completion of
the proposed financing, exploration and development of the Santana
property and the profitability thereof. Forward-looking statements,
specifically those concerned with future performance are subject to
certain risks and uncertainties, and actual results may differ
materially. These risks and uncertainties include the risk that the
investor will be unsatisfied with the results of its due diligence
review or that it may not have sufficient funds to complete the
private placements and other risks and uncertainties detailed from
time to time in Corex Gold Corp.'s filings with the appropriate
securities commissions.
Corex Gold CorporationCraig SchneiderPresident &
CEO604.683.2505604.683-2506info@corexgold.comwww.corexgold.com