|By Marketwired .||
|January 6, 2014 05:05 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 01/06/14 -- Micrex Development Corp. (TSX VENTURE: MIX) announced that it has closed its previously announced acquisition of a 100% interest in a granite claim located near Saint-Alexis-des-Monts, Quebec. The property is comprised of one claim covering approximately 88 acres and has operated as a quarry for a number of years.
The Company has agreed to pay $780,000 for the property, of which $150,000 was paid on closing and $100,000 to be paid in 1,000,000 treasury shares at a deemed price of $0.10 at closing. In addition $100,000 will be paid on each of the second, third, fourth and fifth anniversary dates of closing and $30,000 will be paid on the sixth anniversary date. Micrex shall have the right to elect annually to pay part or all of each annual payment in treasury shares at the then current market price. In addition, the vendor will receive a production royalty of 20% of net sales to be paid quarterly until such time as a total of $100,000 has been paid.
The Company has raised $300,000 in 3 year notes, principally from insiders, which will carry a 5% interest rate plus a 5% sales royalty on sales from the granite quarry until repaid, and then a 2% royalty until the Company repurchases the royalty for a total of $300,000. $150,000 of these funds were used to acquire the granite property, with the balance going toward working capital.
Stan Marshall, President of Micrex stated, "The acquisition of this property should provide the Company with a source of cash flow which would cover its general and administrative costs, enable it to be able to continue to develop its magnetite properties and investigate other opportunities. Our immediate focus is to expand on the granite and stone business just acquired."
Historically the quarry has produced and sold paving stones, countertops, building siding, architectural granite as well as granite curbstones used by Montreal and some other cities in Eastern Canada. In addition there are currently over 300,000 tons of granite tailings at the site which Micrex is going to develop as bedding ballast for railroads with the fines that are left being used in asphalt for roads. The market price per ton for these last two products are $20 and $6 respectively.
Micrex Development Corp. is a mineral exploration company based in Alberta, Canada with properties in North America.
Visit www.mixcorp.com for further details.
MICREX DEVELOPMENT CORP.
Burmis Magnetite/Titanium Property - St. Charles de Bourget Magnetite/Titanium Property - Fort Steele Placer Property - Bighorn Gold Mine - Mount Royal Gold Mine - Deadwood Gold Mine - Sunburst Gold Property
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Certain statements in this news release are "forward-looking statements", which reflect management's expectations regarding its property and business operations. All statements other than statements of historical fact contained in this news release are forward-looking statements. Such forward-looking statements involve risks and uncertainties, as they reflect management's current beliefs and are based on information currently available to management. Actual results may differ materially from those anticipated in the statements made. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Micrex assumes no obligation to update or revise them to reflect new events or circumstances except as expressly required by applicable securities law. Further information regarding the uncertainties and risks can be found in the disclosure documents filed by Micrex with the securities regulatory authorities, available at www.sedar.com.
A mineral exploration and development company operating in Canada and the United States
SEC 12 g (3) Exemption 82-4281