Goldeye Explorations Limited

Goldeye Explorations Limited

November 15, 2012 09:25 ET

Goldeye Explorations Limited Announces Sale of Tyrrell Township Property to Temex

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2012) - Goldeye Explorations Limited (TSX VENTURE:GGY) wishes to announce that it has entered into an agreement (the "Agreement") with Temex Resources Corp. (TSX VENTURE:TME)(FRANKFURT:TQ1) ("Temex") to sell certain of Goldeye's significant landholdings in Tyrrell Township, northeastern Ontario (the "Purchase and Sale").

As a result of the Purchase and Sale, Temex will increase its 100% ownership in the area by over ten-fold from 1,343 acres to 14,423 acres. The landholdings to be acquired include a large block of claims in which Goldeye owns a 100% interest, as well as Goldeye's 40% interest in the claims comprising the Juby Joint Venture Property in which Temex holds a 60% interest.

"This is an extraordinary milestone for Goldeye and Temex 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. We are confident the Purchase and Sale will deliver significant value to both Temex and Goldeye and their respective shareholders," commented Blaine Webster, President and CEO of Goldeye and he added "This transaction maximizes the efficiency of exploration enabling Temex to accelerate the development of this exciting project area." Temex has reported that they are immediately mobilizing two drills to begin expanding our Juby Main Zone gold resources and aggressively explore the project area. Temex has publicly recognized and acknowledged Goldeye's significant contribution and commitment in the advancement of these properties and to the region as a whole in their press release issued today. This transaction has provided cash to enable Goldeye to pursue exploration programs on its other projects as well as freeing Goldeye from the responsibility of financing continuing exploration on the Tyrrell project. At the same time, Goldeye will continue to benefit from any exploration success in the project through its ownership of the Temex shares being paid as part of the consideration for the transaction. Blaine Webster commented, "If Temex and its shareholders do well as a result of this transaction, so will Goldeye and its shareholders. This is a win-win situation which combines Goldeye's highly prospective claims with Temex' existing NI 43-101 compliant existing resources." Mr. Webster also stated that Goldeye retains a number of claims in the area which could become valuable should this area continue to prove up.

About the Purchase and Sale

The Purchase and Sale will consolidate the land in the immediate vicinity of the Juby Main Zone gold resources and at the same time extend Temex's 100% ownership of the important Tyrrell Structural Zone ("TSZ"), host to all of the major gold occurrences in the region, a further 5 kilometres along trend, doubling Temex's control to approximately 10 kilometres. The TSZ is a major structural feature similar in many geological respects to the Cadillac-Larder Lake and Destor-Porcupine major faults zones host to the world class Kirkland Lake and Timmins gold camps in the region.

Major gold zones identified by Goldeye along the TSZ include the Big Dome from which Goldeye has reported drill intersections including 217.50 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.

The Big Dome and Hydro Creek gold zones are located 4 and 5 kilometres directly on strike along the TSZ west of the Juby Main Zone NI 43-101 gold resources which are 935,000 ounces of gold grading 1.30 g/t in the Indicated category and 906,000 ounces of gold grading 1.00 g/t in the Inferred category (news release January 16, 2012) utilizing a 0.40 g/t cut-off grade.

The Juby Main Zone gold deposit is wide open at depth and in particular along strike to the west on the Golden Lake property where Temex recently reported drill intersections (news release July 23, 2012) including 0.74 g/t gold over 129.00 metres; 1.21 g/t gold over 31.00 metres; 3.24 g/t gold over 8.29 metres; and 34.31 g/t gold over 1.50 metres extending the Juby Main Zone gold system a further 750 metres where it remains wide open.

The Purchase and Sale also delivers significant "blue sky" exploration potential for the discovery of both high grade and bulk tonnage gold resources in numerous areas including an untested 3 kilometre stretch along the "TSZ" between Golden Lake and the Big Dome gold systems, as well as the large area south of the TSZ where numerous drill targets have been identified.

Terms of the Purchase and Sale

Under the terms of the Agreement, Temex will pay to Goldeye $500,000 in cash and issue 5 million common shares of Temex on closing of the Purchase and Sale. Goldeye has agreed to vote its common shares of Temex in support of management of Temex and its recommendations and to certain restrictions on the disposition or transfer of such shares, in either case for a period of two years from the closing date. Goldeye has also agreed, subject to the completion of the Purchase and Sale, to provide Temex with the right to acquire any landholdings currently held by Goldeye in the Tyrrell Township which Goldeye hereafter proposes to sell or otherwise dispose of. Certain of the claims are subject to underlying NSR Royalties ranging from 2 to 2.5%, most of which include buy-down provisions ranging from 1.0 to 1.5% NSR Royalty.

The Agreement contemplates that the parties will negotiate and enter into a further, definitive purchase and sale agreement, subject to Temex's right (in its sole discretion) to complete the Purchase and Sale without doing so. The completion of the Purchase and Sale is expected to occur on or before November 23, 2012. On completion of the Purchase and Sale, the joint venture between Temex and Goldeye relating to the Juby Joint Venture Property will be terminated. The proposed Purchase and Sale has been approved by both companies' boards of directors and conditionally approved by the TSX Venture Exchange.

On behalf of the Board of Directors

Blaine Webster, President and CEO


Goldeye is a Canadian gold-focused exploration company with properties in mineral rich, politically secure jurisdictions with long traditions of mining. In Canada, Goldeye holds a 24.5 % interest in the Todd Property in British Columbia, a 100 % interest in the Gold Rock and Sandy Lake properties in Ontario and a remaining block in Tyrrell Twp. after the completion of the proposed sale of the main block to Temex Resources Corp. In Chile, Goldeye owns 100 % of the Sonia-Puma property located 180 km north of Santiago.

Goldeye will focus on getting full value from its portfolio of excellent gold projects. With regard to the Sandy Lake project, upon signing the exploration agreement with the Sandy Lake First Nation, a program of geological mapping and geophysics will be started, to be followed by diamond drilling during the winter season. The Gold Rock project is drill ready and a winter drill program is being formulated. The Sonia project in Chile is also drill ready and Goldeye is presently looking for a partner to continue the exploration of this property.

Forward-Looking Statements: This news release includes certain "forward-looking statements". Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. The Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Shares Issued after Financing: 20,173,645

Neither 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.

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