Margaux Resources Ltd.
TSX VENTURE : MRL

April 01, 2014 09:00 ET

Margaux Resources Ltd. Announces Filing of Geological Report and TSXV Approval of Option Agreement

CALGARY, ALBERTA--(Marketwired - April 1, 2014) - Margaux Resources Ltd. (TSX VENTURE:MRL) ("Margaux" or the "Company") is pleased to announce that it has satisfied the TSX Venture Exchange's (the "Exchange's") conditions for approval of the Company's previously announced option agreement (the "Option Agreement") dated November 8, 2013 (as amended) with Sultan Minerals Inc. (TSX VENTURE:SUL) ("Sultan") in respect of the Jersey-Emerald Tungsten-Zinc Property (the "Property"), located in southeastern B.C (announced November 11, 2013).

The Company is also pleased to announce that it has filed a NI 43-101 compliant technical report in respect of the Property which is available on SEDAR at www.sedar.com.

Under the terms of the Option Agreement, Margaux will have the exclusive option to acquire a 100% working interest in the Property (subject to the net smelter returns royalties ("NSRs") discussed below) by:

  1. making payments to Sultan of an aggregate $4.0 million, paid in several installments on or before November 8, 2016 (the "Agreement Date") as follows:

    1. initial deposits of $200,000 paid previously;

    2. release of a cash payment of $300,000, previously held in trust pending receipt of TSX Venture Exchange approval for the transaction;

    3. on or before the first anniversary of the Agreement Date, a cash payment of $750,000;

    4. on or before the second anniversary of the Agreement Date, a cash payment of $1,250,000; and

    5. on or before the third anniversary of the Agreement Date, a cash payment of $1,500,000; and

  2. incurring not less than $2,000,000 in expenditures on the Property on or before the third anniversary of the Agreement Date.

Margaux will use its best efforts to incur expenditures of $6,000,000 on the Property on or prior to the third anniversary of the Agreement Date.

Sultan retains a 1.5% NSR on the Property. For a period of 60 days following the earlier of (a) the commencement of commercial production on the Property or (b) the completion of a feasibility study on the Property, Margaux may purchase 50% of the NSR (being a 0.75% net smelter returns royalty) from Sultan for a payment to Sultan of $5.0 million. The Property is also subject to several additional NSRs, ranging from 1-3% on various areas of the Property.

Margaux's disclosure of a technical or scientific nature is prepared by, or under the direct supervision of, Mr. Edward Lawrence, a director of the Company, who serves as the Company's qualified person (QP) under the definitions of National Instrument 43-101.

About Margaux Resources Ltd.: Margaux is based in Calgary, Alberta and a publicly traded resource company with oil and gas exploration and production in south eastern Alberta and an option on the Jersey Emerald Tungsten-Zinc Property, located in southeastern B.C.

Tyler Rice, President, CEO and CFO

FORWARD-LOOKING INFORMATION

This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the Company's expectations regarding its ability to make the required installment payments under the Option Agreement.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Margaux which have been used to develop such statements and information but which may prove to be incorrect. Although Margaux believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Margaux can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward-looking statements contained in this press release are made as of the date hereof and Margaux undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

Contact Information

  • Margaux Resources Ltd.
    Tyler Rice
    President, CEO and CFO
    (403) 537 5590