Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. announces that Merrex and IAMGOLD Corporation have agreed on the commercial terms of an option for 50% of Merrex’s Siribaya Gold Project in West Mali, Africa.
$12,000,000 Option and Private Placement
The commercial terms of a $12,000,000 option and private placement have been agreed between Merrex and IAMGOLD. Pursuant to the commercial agreements reached IAMGOLD may incur $10,500,000 of exploration expenses over four years to earn a 50% interest in the Siribaya Gold Project. Merrex will be the initial project operator. IAMGOLD will also invest $1,500,000 in Merrex by subscribing for 4,285,714 private placement units at $0.35 per unit. Each unit will be comprised of one share and one twelve-month share purchase warrant exercisable at $0.45.
“Over the past two years, as each successive drill program produced better and better results, we became increasingly confident in our Siribaya Gold Project” said President Gregory Isenor. “Numerous gold producers have reviewed our data and visited our project site in Mali. From the beginning, IAMGOLD was at the top of our ’short list’ of potential partners for Siribaya. We are pleased that IAMGOLD has committed to Siribaya bringing both considerable financial investment and exceptional gold exploration technical expertise. We also appreciate that IAMGOLD, with its long-standing participation in the Malian mining community, continues to have confidence in the mineral potential of Mali and our Siribaya Gold Project in particular.”
Further details of the Siribaya Option Agreement will be released once documentation and due diligence are completed.
This commercial agreement remains subject to final documentation and completion of due diligence and regulatory approvals as may be required.
Merrex’s principal projects are its Siribaya Gold Project, an advanced exploration project in Mali (West Africa) and its Jubilee Zinc Deposit in Cape Breton, Nova Scotia.
Merrex Gold is a mineral resource exploration company focusing on gold exploration in West Mali, Turkey and in the Red Lake area of Ontario and zinc exploration in Cape Breton, Nova Scotia. Merrex has a solid organization of people and projects enabling aggressive exploration, discovery, and growth.