NEW:Merrex Resources to option Mali property in LOI
[ Merrex Resources trades as MRX.H on the Toronto NEX Exchange. It was halted in late 2004 and seems to have had little or no trading in the first half of 2005. Since August it has nearly quadrupled from C$0.10 to C$0.38 with some volume. It also trades (extremely thinly and rarely) as MRXFF on the Pink Sheets. FL ]
2005-11-01 12:12 ET - News Release
Mr. John Cumming reports
MALI PROPERTY OPTION
Merrex Resources Inc. has entered into a letter of intent with Societe d'explorations Miniera Touba SARL of Bamako, Mali, to option certain mining concessions within the West African nation of Mali. Pursuant to the terms of the letter of intent the corporation may earn up to a 95-per-cent interest in certain mining concessions, including the 132-square-kilometre Siribaya permit and other concessions totalling approximately 500 square kilometres, for which applications are pending or negotiations are under way within a 4,100-square-kilometre defined area of interest. The concessions will include all minerals but the corporation's primary interest in the concessions is for their potential for gold exploration.
The Siribaya permit is located in the southern part of the Kenieba Birimian window that hosts several deposits including Sadiola, Tabakota and Loulo. Past exploration on the Siribaya permit has identified structures with associated geochemical anomalies and gold Orpailleur workings. The Siribaya permit has not been drilled.
To earn the agreed interest, the corporation must make annual cash payments totalling $85,000 and incur exploration expenditures totalling $750,000 over three years as follows:
Due date Cash Exploration Interest
payments expenditures earned
On exec-
ution $10,000
By first
anniver-
sary $25,000 $200,000 30%
By second
anniver-
sary $50,000 $250,000 30%
By third
anniver-
sary $300,000 35%
If optioned interests are earned and if the concessions are to be developed as a mine, the corporation's interest will be diluted in favour of the government of Mali as required by the mining laws of Mali as follows:
Parties Interest
Merrex 75% participating
Government
of Mali 0% participating (optional)
10% carried
Touba 5% carried
If the government of Mali elects not to participate, its 10-per-cent participating interest reverts to Merrex.
All concessions are subject to a 5-per-cent net profit interest in favour of Touba.
The letter of intent is subject to a number of conditions including completion of formal documentation within 90 days, exchange approval, exercise of the Jubilee option and graduation to TSX Venture Exchange Tier 2.
We seek Safe Harbor.
