HALIFAX, NOVA SCOTIA, Aug. 26, 2010 (Marketwire) -- Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) announces Merrex has agreed to acquire the other 50% interest in the Jubilee Zinc Lead Project in Nova Scotia.
Purchase of Jubilee
Merrex has agreed to purchase a 50% interest in the Jubilee Zinc Lead Project and other Nova Scotia base-metal mineral claims from Frontline Gold Corp. ("Frontline") for $500,000 to be paid by the issuance of 1,000,000 common shares of Merrex at a deemed issue price of $0.50/share.
Merrex is related to Frontline by way of common directors and the transaction is subject to certain pre-conditions on behalf of Frontline including receipt of a satisfactory fairness opinion and shareholder approval. The transaction is also subject to TSX Venture Exchange on behalf of both parties. Frontline has engaged Stonecap Securities Inc. to provide a fairness opinion on the transaction.
Merrex already owns the other 50% interest in the Jubilee Zinc Lead project and other Nova Scotia base-metal mineral claims. Frontline has advised Merrex that it does not intend to finance further exploration at Jubilee and management believes that consolidating the Jubilee property ownership will best facilitate its further exploration or disposition.
Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource... a winning combination offering investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent corporate presentation.
On Behalf of the Board
Gregory Isenor, P.Geo., President & CEO
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.
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Jason Roy
Barbara Komorowski
Merrex Gold Inc.
Renmark Financial Communications Inc.
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info@merrexgold.com
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