Press release from Marketwire
Nordex Explosives Announces Optioning of Melba Gold Property to Telluriton Corp.
Tuesday, May 13, 2014
Nordex Explosives Announces Optioning of Melba Gold Property to Telluriton Corp.07:00 EDT Tuesday, May 13, 2014
KIRKLAND LAKE, ONTARIO--(Marketwired - May 13, 2014) - NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) ("Nordex" or the "Corporation") is pleased to announce that it has entered into a purchase and sale agreement (the "Agreement") with Telluriton Corp. which provides that Nordex will grant an option to acquire a 100% interest in its Melba gold properties (the "Melba Property") to Telluriton.
The Melba Property is located approximately 20 km north of Kirkland Lake, Ontario between the Destor Porcupine Fault System and the Kirkland Lake Larder Lake Fault System. An exploration program carried out in the 1930's included trenching, diamond drilling, shaft sinking and underground workings which opened up four gold-bearing quartz calcite veins.
The terms of the four year option of the Melba Properties are as follows:
- Telluriton upon signing of the Agreement, shall pay to Nordex $25,000 in cash
- Telluriton agrees to pay all lease payments and maintain the property in good standing
- Telluriton agrees to issue 1,000,000 million common shares once listed as a publicly traded company to Nordex
- Telluriton agrees to recover and process the existing ore stock pile on the property on or before the first anniversary of the Closing Date and shall share equally any profit derived with Nordex
- Telluriton shall complete $1,000,000 of assessment work on the Melba Property, which shall be competed in $250,000 increments prior to each of the four anniversary dates of the Closing Date.
After the completion of the Cash Payments, the Share Issuances and Work Commitments, Telluriton will have earned a 100% interest in the Melba Property, subject to a 2% net smelter return royalty ("NSR") to be granted to Nordex, with a buyback privilege of Telluriton of 1% of the NSR from Nordex for $1,000,000.
Mr. Jim Taylor, Chief Executive Officer of Nordex stated: "This agreement with Telluriton will provide for the exploration of the Melba properties and at the same time will permit Nordex to focus on its core business of manufacturing and distributing explosives to the mining, quarry and road construction industries."
The finalization is subject to the parties entering into the Definitive Agreement, as well as the receipt of all required Board of Director, TSX Venture Exchange and regulatory approvals.
The Melba Gold property which is comprised of 18 leased one unit claims in the north western part of Melba Township is located approximately 20 kilometers north of Kirkland Lake. There are two dominant regional geological structures proximate to the claims including the "Porcupine-Destor" fault system which passes about 9 miles north of the property and the "Kirkland Lake-Larder Lake" fault system.
A number of successful current and past gold producers are associated with these structures including; the Pamour Mine, the Dome Mine, Kirkland Lake Gold and the Kerr-Addison Mine. The sedimentary rocks occurring on the property are thought to represent another infolded structure which has been the loci for strong faulting and into which porphyries with their associated gold bearing veins have intruded. The property includes a previous mine shaft and a surface ore pile from previous mining operations.
About Nordex Explosives
Nordex Explosives Ltd. is a Canadian based manufacturer and distributor of explosives for the mining, quarry and construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex is the exclusive supplier of the "Buttbuster" perimeter control explosive products in Canada. Additional information can be found at www.nordexexplosives.com
Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Capital Ideas IR
T: 403 517 2270
Jim Taylor, President and CEO
T: 705 642 3265 extension 203