Temex Resources Corp. (CVE:TME) Wednesday said it has entered into an agreement with Goldeye Explorations Ltd. (CVE:GGY) for a "major land acquisition" in northeastern Ontario, for $500,000 in cash and five million shares.
The purchase will result in Temex increasing its 100-per-cent ownership in the Tyrrell Township area by "over ten-fold" from 1,343 acres to 14,423 acres, providing "significant blue sky exploration potential" for the discovery of both high grade and bulk tonnage gold resources in numerous areas.
The company will take over a large block of claims in which Goldeye owns a 100-per-cent interest, including Goldeye's 40-per-cent interest in the Juby joint venture property in which Temex holds a 60-per-cent interest. Goldeye has also agreed to hand over any other of its land claims in Tyrrell Township, some of which are subject to net smelter return (NYSE:NSR) royalties ranging from two to 2.5 per cent and buy-down provisions ranging from 1.0 to 1.5% NSR royalty.
"This is an extraordinary milestone for our company since the Goldeye properties are contiguous and complementary to the existing Temex assets in Tyrrell Township and when combined, form the dominant land holdings in this emerging gold district," said president and CEO Ian Campbell.
"This transaction maximizes the efficiency of exploration enabling us to accelerate the development of this exciting project area."
The completion of the deal is expected to occur on or before November 23, and will effectively terminate the joint venture on the Juby property, Temex said.
The company said it will immediately mobilize two drills to begin expanding its Juby main zone gold resources and "aggressively explore" the project area.
Under the terms of the deal, the land in the immediate vicinity of the Juby main zone will be consolidated, while extending Temex's ownership of the Tyrrell structural zone a further five kilometres along trend to about 10 kilometres.
The company noted that the Tyrrell structural zone is host to "all of the major gold occurrences" in the region and is similar to the Cadillac-Larder Lake and Destor-Porcupine major faults zones which host the Kirkland Lake and Timmins gold camps in the region.
Major gold zones identified by Goldeye along the zone include the Big Dome, which featured drill intersections including 217.50 grams per tonne (g/t) gold over 2.10 metres, 13.10 g/t gold over 3.00 metres and 80.70 g/t gold over 2.10 metres; and the Hydro Creek zone which includes drill intersections of 5.89 g/t gold over 12.50 metres, 3.58 g/t gold over 20.20 metres and 4.28 g/t gold over 14.00 metres.
Temex noted that the Big Dome and Hydro Creek gold zones are located west of the Juby main zone, which has NI 43-101 compliant resources of 22.3 million tonnes at a grade of 1.30 g/t gold for 934,645 ounces of gold in the indicated category, and 28.2 million tonnes at a grade of 1.00 g/t gold for 905,621 ounces of gold in the inferred category, both at a cut-off grade of 0.40 g/t gold.
Temex is a Canadian-based exploration company focused on precious metals properties in northeastern Ontario.
Last month, the company closed two separate financings, raising a total of $8.9 million.
The new funds raised from the sale of all the flow through shares will be used for exploration expenses on its precious metals properties, while the proceeds from the sale of all units under the offerings are expected to be used for exploration and working capital.
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