Philex Gold Inc.

Philex Gold Inc.

October 04, 2007 08:00 ET

Philex Gold Announces Earn-In Agreement With PDEP, Inc.

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Philex Gold Inc. (TSX VENTURE:PGI) announces the execution of an Earn-In Agreement (the "Agreement") on October 3, 2007 between its wholly-owned subsidiary, Philex Gold Philippines, Inc. ("PGPI") and PDEP, Inc. ("PDEPI") concerning part of PGPI's Sibutad Project tenements (the "Property") covering 6,954 hectares in the province of Zamboanga del Norte in the Island of Mindanao, Philippines. PDEPI is the Philippines indirect 40%-owned subsidiary of Freeport McMoRan Copper & Gold, Inc., one of the world's largest copper and gold producers.

Under the terms of the Agreement, PDEPI has the right to earn an initial interest of 40% in the Property by making certain expenditures, totaling at least US$2,000,000 over a period of three years, on or for the benefit of the Property. Subsequently, PDEPI can earn an additional 20% interest in the Property by spending another US$2,000,000 on or before the fifth anniversary of the Agreement.

The Property consists of the areas covered by an Exploration Permit Application (EPA # 047-IX) that measures 5,846 hectares, a Mine Production Sharing Agreement (MPSA 63-97-IX) covering 622 hectares and an Application for Production Sharing Agreement (APSA 73 -IX) covering 486 hectares for a total of 6,954 hectares. The Property lies in a highly mineralized region in the Zamboanga Peninsula in Western Mindanao, Philippines. This region is host to copper, gold, silver, lead, zinc, chromite prospects, a volcanic-hosted massive sulfide deposit, and several epithermal gold and porphyry copper prospects in advanced exploration stage.

PDEPI has been exploring in the Philippines for the last ten years. It is a 40%-held subsidiary of Freeport McMoran Exploration Corporation, a subsidiary of Freeport-McMoRan Copper & Gold Inc. which recently acquired Phelps Dodge Corporation, a company with over a century of experience in the exploration and mining industry.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Philex Gold Inc.
    Rogelio G. Laraya
    (632) 746-8755
    (632) 631-9498 (FAX)