VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2011) - Cap-Ex Ventures Ltd. (TSX VENTURE:CEV) ("Cap-Ex" or the "Company") is pleased to announce that it has entered into an agreement to acquire a 100% interest in four contiguous iron ore properties in the Labrador Trough twelve kilometres south-southeast of Schefferville, Quebec (the "Redmond Properties").
The Redmond Properties, totaling 112 claims and covering an area of 2,800 hectares, cover strategic ironstone stratigraphy of the Sokoman Formation and the probable southeast extension of the key stratigraphic horizon that contains the high-grade direct shipping ores (DSO) hosted in the Sokoman Formation.
Cap-Ex's northern neighbour, Labrador Iron Mines Holdings Ltd., owns the main Redmond deposits, 3 to 6 kilometres northwest along strike, where approximately 35 million tonnes of DSO grading 52-54% Iron (Fe) was mined during the 1970s and early 1980s. Many millions of tonnes of varying grade iron ore remain.
There are numerous iron zones/showings known within the Cap-Ex Redmond Properties. The most prospective all occur within the favourable horizon of the Sokoman Formation on the western claims of the Redmond Properties.
The Redmond Properties cover some 6.5 kilometers of strike of historical iron ore occurrences all within 3 to 12 kilometers on strike of the past producing Redmond DSO iron ore deposits.
A 100% interest in the Redmond Properties can be purchased, subject to regulatory approval, from the vendor by making the following cash payments, share issuances and work commitments:
Time Period |
Cash |
Share Issuance ($) |
Work Commitment |
| On signing | $10,000 | ||
| On regulatory approval | $90,000 | $200,000 | |
| First year anniversary | $300,000 | $200,000 | |
| Second year anniversary | $300,000 | ||
| Third year anniversary | $500,000 | $500,000 |
Upon completion of these payment and expenditures, the Company will own a 51% interest in the Redmond Properties. To purchase the remaining 49%, Cap-Ex must pay the vendor an additional $500,000 in cash or common shares prior to the fifth year anniversary of the Agreement. In addition, the vendor will retain a 2% NSR on the properties, 50% of which may be purchased for $1,000,000 in cash prior to the five year anniversary.
A finder's fee equal to 5% of the cash and share issuances will be paid, subject to regulatory approval, in connection with this acquisition.
The Company anticipates funding its first year commitments under the Redmond Properties agreement with the approximately $225,000 in warrant exercise proceeds received in the last few weeks and with any additional warrant exercise funds received in the coming months.
Cap-Ex is currently sourcing historical Iron Ore of Canada reports including historical drilling information on the Redmond Properties. It is anticipated that the Company will drill the direct shipping iron ore iron horizons this coming season.
Ed Kruchkowski, P.Geo., a qualified person pursuant to National Instrument 43-101 and director of the Company, has reviewed and approved of the contents of this news release.
Cap-Ex Ventures Ltd. is a Canadian resource company focused on exploration and development of iron ore projects in the Labrador Trough. The Company's Schefferville Properties cover an area of 11,850 hectares and are strategically located close to Iron Ore Processing Plants. Block 103 is on strike to New Millennium's direct shipping ore ("DSO") deposits and KeMag magnetite deposits both to the north and New Millennium/Labrador Iron Mines DSO deposits to the south. In 2008, an airborne magnetic survey identified the most intense magnetic response in the iron belt within Cap-Ex's Block 103 property. Cap-Ex plans to drill the high grade magnetite and the DSO horizons this coming season. The other Schefferville Properties will be the target of additional DSO. Acquisition of the Company's Schefferville Properties is subject to the final approval of the TSX Venture Exchange.
For additional information please visit the Company's website at www.cap-ex.ca.
CAP-EX VENTURES LTD.
Andrew Bowering, President and CEO
"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."
Contact Information: Cap-Ex Ventures Ltd.
Investor Relations
604-669-2279
604-602-1606 (FAX)
info@cap-ex.ca
www.cap-ex.ca