Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

September 30, 2009 08:44 ET

Merrex Modifies Jubilee LOI

HALIFAX, NOVA SCOTIA--(Marketwire - Sept. 30, 2009) - 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 modified its Letter of Intent ("LOI") with TSX capital pool corporation Chrysos Capital Corporation ("Chrysos") to sell the Jubilee Zinc Project and other non-core exploration assets. Under the modified LOI Merrex will now sell Chrysos only 50% of the Jubilee Zinc Project and other Nova Scotia exploration properties for 18,675,000 shares of Chrysos rather than the previously agreed 100% for 37,350,000 shares. In addition Chrysos has made a firm commitment to fund the next phase diamond drilling program (1,500 metres estimated at $413,600). The balance of the LOI remains unchanged.

Merrex and Chrysos agreed to the LOI modification following financing discussions within the investment community. With the LOI modified, successful financing of the resulting corporation appears certain.

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-Snap Lake region.

The retained 50% interest in the Jubilee Zinc Project and related Nova Scotia exploration properties will be divested in a separate unrelated transaction and Management is evaluating the alternatives to best effect that distribution.

The LOI as modified remains subject to numerous conditions on behalf of both parties including completion of a definitive agreement, regulatory and shareholder approvals and completion of adequate financing.

Merrex Gold 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.

Contact Information

  • Merrex Gold Inc.
    Greg Isenor
    President & CEO
    (902) 832-5555