SOURCE: ExGen Resources Inc.

ExGen Resources Inc.

July 06, 2017 15:03 ET

ExGen Provides Update on Phoenix IPO and Empire Activities

VANCOUVER, BC--(Marketwired - July 06, 2017) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ExGen Resources Inc. (TSX VENTURE: EXG) (OTC PINK: BXXRF) ("ExGen") is pleased to provide an update in respect of Phoenix Global Mining Ltd.'s ("Phoenix") initial public offering (the "Phoenix IPO") and Alternative Investment Market of the London Stock Exchange ("AIM") listing. ExGen understands that Phoenix has completed the Phoenix IPO of £4.6 million at a price of £0.04/common share and that the entire issued share capital of Phoenix was admitted to trade on AIM as of June 29, 2017 under the symbol "PGM".

EMPIRE UPDATE -- HIGHLIGHTS

  • 28 hole (2,200 metre) drilling program underway within the Anderson Pit area
  • First drill assay results expected in 3 to 6 weeks
  • Metallurgical studies and Preliminary Feasibility Study ("PFS") underway
  • Phase 1 initially focused on oxide mineralization within the Anderson Pit vicinity
  • Phase 2 exploration focused on deeper, higher grade sulphide zone, with historical intercepts of up to 11.4% copper ('Cu') and additional metal credits including gold (drill results inc. 1.5m @26.4g/t Au), silver (drill results inc. 9m @ 126.6g/t Ag) and tungsten (grab samples as high as 4.3%W03)

Further to press releases dated July 21, 2015 and November 14, 2016, ExGen, Phoenix, a private British Virgin Islands based mining company focused on base metals development, and Konnex Resources, Inc. ("Konnex"), which holds the leases to ExGen's Empire Mine Project ("Empire Mine Project"), have entered into an Option Agreement, as amended, on ExGen's Empire Mine Project, pursuant to which Phoenix acquired 80% of the common shares of Konnex (the "Option") and the remaining 20% are continued to be held by ExGen. As part of the consideration under the Option, ExGen was issued 11,300,000 common shares of Phoenix, which represents just under 5% of the currently outstanding shares of Phoenix after the Phoenix IPO. For further information on the Option, including the circumstances pursuant to which the Konnex common shares would be transferred back to ExGen, please see the November 14, 2016 news release.

As stated in Phoenix's June 29, 2017 news release, Phoenix's strategy to develop the Empire Mine Project can be split into two phases, as detailed below, which will run concurrently. Phoenix announced that the immediate focus is Phase 1, which is to fast track the copper oxide mineralization in the Anderson Pit through a Pre-Feasibility Study over the next 12 months. The longer-term Phase 2 strategy, is to complete a thorough exploration program of the copper sulphide system at depth and the associated gold, silver, zinc, cobalt and tungsten mineralisation evidenced in historic exploration programs. Should the economic viability and technical feasibility of the project be established by a Feasibility Study, Phase 1 will focus on the development of a mine at the shallow copper oxide mineralization. Phoenix has commenced mineralization drilling and expects to complete the Pre-Feasibility Study within 12 months. Assuming positive results, it is anticipated that Phoenix will then commence a Feasibility Study which will take up to a further twelve months to complete, before arranging project finance to begin construction of the mine. Phase 2 is focused on the wider exploration potential of the Empire Mine Project and anticipates commencing an initial exploration program to evaluate the copper sulphides, which lie underneath the Anderson Pit and along strike. The exploration program will assay for gold, silver and zinc, which was mined historically and will evaluate the potential by-products including cobalt, tungsten and molybdenum. An independent technical report will be completed following the initial exploration program.

Phase 1: Anderson Pit Drilling

The current drill program has already commenced and will focus on identifying further oxide mineralization within the Anderson Pit area. Also, a number of drill holes will be used for the purposes of new metallurgical studies to build on the historic knowledge from prior studies.

Phoenix has initially committed to a 28-hole, 2,200 metres, drilling program consisting of 21 RC drill holes for a total of 1,600 metres designed to infill and augment the historical drilling within the Anderson Pit area. This includes 300 metres HQ diameter core in 4 holes and 300 metres large PQ diameter in 3 holes, which will provide samples for bulk metallurgical test work.

As of 4 July 2017, 5 of the 21 RC holes had been completed to a total of 317 metres, and 2 of the 4 HQ core holes have been completed for a total of 169 metres. The PQ core drilling program is anticipated to begin the week commencing 10 July 2017.

Phase 2: Sulphide Exploration

Phoenix is now completing the necessary planning for regaining underground access for mapping, sampling and drilling in the sulphide zone beneath the oxides.

Pre-Feasibility Study: Inviting Proposals

Phoenix is currently inviting and evaluating proposals from engineering firms with a successful track record of designing open pit oxide copper heap leach projects for the position of lead consultant responsible for the Preliminary Feasibility Study (PFS) for the Anderson Pit.

Mr. Jason Riley, CEO of ExGen commented: "We wish to congratulate the entire Phoenix team on a successful IPO. Phoenix's plans to complete a pre-feasibility study at Empire over the next 12 months should provide ExGen with improved visibility on our potential path to cash flow. We are also encouraged by Phoenix's 2 Phase approach to exploration and development of both the oxide and sulphide potential at Empire. The sulphide zone has long been of interest to ExGen, with significant historical results, but has remained largely untested. The Phoenix IPO, and significant raising of funds, marks a new chapter in ExGen's strategic repositioning towards building a portfolio of joint ventures and royalty interests."

The reader is referred to ExGen's November 14, 2016 and January 30, 2017 news releases for additional technical information on the Empire Mine Project.

Phil van Angeren, P. Geo., a Qualified Person as defined by National Instrument 43-101, and less than 1% shareholder of Phoenix Global Mining, has reviewed and verified the technical mining information provided in this release.

About ExGen Resources Inc.

ExGen, formerly Boxxer Gold Corp, is a project accelerator that seeks to fund exploration and development of our projects through joint ventures and partnership agreements. This approach significantly reduces the technical and financial risks for ExGen, while maintaining the upside exposure to new discoveries and potential cash flow. The company intends to build a diverse portfolio of projects across exploration stages and various commodity groups. ExGen currently has 6 projects in Canada and the US.

For more information on ExGen please visit our website at http://exgresources.com or contact ExGen Resources Inc.

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.

Forward-Looking Information: This news release contains certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. In particular, this news release contains forward-looking information in relation to: the Empire Mine Project; the earning of the Option by Phoenix and the potential transfer back to ExGen of the Konnex shares; the development and development strategy of the Empire Mine Project, including the exploration program, drilling, mine development, completion of a Pre-Feasibility Study and a Feasibility Study, and commencement of production, and the timing for completion of these events; the potential impact on of positive results such as cash flow and sales of minerals; the commencement of production on the Empire Mine Project and the timing for completion of the commencement of production; and the timing for receipt of exploration information and the first drill assays. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. There can be no assurance that the development of the Empire Mine Project will be completed, and if development is completed, that such development will result in a producing mine. In the forward looking information contained in this news release, ExGen has made numerous assumptions, based upon practices and methodologies which are consistent with the mineral industry. In addition, ExGen has assumed: the continued market acceptance of its joint venture partnership model; the ability of ExGen to raise future equity financing, if needed, at prices acceptable to ExGen; ExGen's current and initial understanding and analysis of the Empire Mine Project; the ability of ExGen or third parties to discover viable exploration targets and the results of exploration on the Empire Mine Project; the ability of Phoenix to explore and develop the Empire Mine Project; the cost of exploration, including sampling, drilling and assaying, on the Empire Mine Project, the costs of developing the Empire Mine Project and the costs and the ability of Phoenix to produce a feasibility study; the and ExGen's general and administrative costs remaining constant. While, ExGen considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause ExGen's observations, actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: there is no certainty that the Option will result in significant exploration of the Empire Mine Project or development of the Empire Mine Project into a producing mine; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineralization and uncertainty as to the actual results of exploration and development or operational activities; uncertainty as to the availability and terms of future financing; uncertainty as to timely availability of permits and other governmental approvals; ExGen may not be able to comply with its ongoing obligations regarding its properties; the early stage development of ExGen and its projects, and in particular, the Empire Mine Project; general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities, junior market securities and mining exploration company securities; commodity prices; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting ExGen; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions and risk factors used to develop such forward-looking information that may cause actual results to differ materially from forward-looking information can be found in ExGen's disclosure documents on the SEDAR website at www.sedar.com. Although ExGen has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. ExGen does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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