HALIFAX, NOVA SCOTIA, Oct. 27, 2009 (Marketwire) -- Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX VENTURE:MXI) announces:
SALE OF JUBILEE ZINC AND OTHER NON-CORE ASSETS
Merrex has concluded the formal agreement with Chrysos Capital Corporation ("Chrysos") for the sale of 50% of the Jubilee Zinc Project and other non-core exploration assets for 18,675,000 shares of Chrysos. In addition Chrysos will fund the next phase diamond drilling program (1,500 metres estimated at $413,600) at Jubilee.
"Management's plan is for the Chrysos shares to be distributed to Merrex shareholders as a dividend on a record date to be determined" commented Merrex President, Gregory Isenor. "The dividend rate will be approximately one Chrysos share for each four Merrex shares owned. Of note for Merrex shareholders, Chrysos is concurrently acquiring the Niaouleni Gold Project in south Mali, an advanced gold exploration project that is drill ready. The share dividend, when declared, will allow Merrex shareholders to participate in this new Mali gold exploration project."
The Merrex assets to be sold to Chrysos include a) a 50% interest in its Jubilee Zinc Project and related Nova Scotia exploration properties, b) its Turkey gold properties including its 90% interest in Merrex Turkey, its strategic association with AgeanGold and the Roscan-Turkey Option and Joint Venture, and c) 100% of its properties in the Red Lake-Birch Lake region.
The formal contract is subject to closing conditions on behalf of both parties including regulatory and shareholder approval on behalf of Chrysos and completion of satisfactory financing.
Merrex is a mineral resource exploration company focusing on gold exploration in West Mali. Merrex has a solid organization of people and projects enabling aggressive exploration, discovery and growth.
Please visit our website at www.merrexgold.com for the most recent presentation.
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
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.