Essex Signs Gold Stream Joint Venture and Announces Director Change
ESSEX MINERALS INC.
Vancouver, British Columbia
ESSEX SIGNS GOLD STREAM JOINT VENTURE AND ANNOUNCES DIRECTOR CHANGE
Not for Distribution in the United States or dissemination through a U.S. newswire service
| July 13, 2020 – Vancouver, BC – Essex Minerals Inc. (the “Company”) (TSX-V: ESX) announces that | further to its |
| news release of June 1, 2020 it has signed a gold stream joint venture agreement with Zola Minerals Inc., an arm’s length | |
| private streaming and royalty company. |
Zola has an agreement with a private US-based gold re-leach operating company giving it the right to provide stream finance on a number of previously mined gold heap leach projects (the “Projects”) with the potential to provide near term stream income. The provision of any stream finance is subject to the completion of final engineering studies, satisfactory due diligence and the definitive legal documentation.
Under the terms of the agreement with Zola, Essex has the option to participate for a 50% interest in any gold streams on the Projects in exchange for paying Zola C$300,000 cash and financing the upfront payment of up to US$4.5 million on the first Project. Gross Profits generated will be shared 50:50 with Zola, subject to a minimum IRR to Essex of 15% on funds invested.
Essex also has an option to acquire Zola, it subsidiaries or its business based on an independent valuation should the directors of Zola decide to sell any time before July 9, 2021. This option will remain in place, even if no gold streams on the initial Projects proceed.
Final engineering studies are underway on the first Project, with a decision to proceed expected to be made before the end of 2020.
Essex is also pleased to announce that it continues to strengthen the mining corporate finance expertise at its board level with the appointment of Ms. Meghan Lewis as an independent Director of the Company. Ms. Lewis is a mining analyst and corporate finance professional with almost 20 years’ experience in all aspects of the resources industry. She has strong links into the Canadian mining corporate finance sector and was previously Vice President, Corporate Development for Aura Minerals Inc. Prior to Aura, she spent eight years as a senior mining analyst with the Dundee Group of Toronto. She holds a B.Sc. Hons in Geological Science from Queens University, an M.Sc. Geology from Dalhousie University and commenced her career as an exploration geologist with Golden Star Resources.
Ms. Yuying Liang has resigned as a Director of the Company. The Board thanks Ms. Liang for her past service and wishes her success with her future endeavours.
About Essex
Essex Minerals is an exploration and development company focused on mineral exploration and development opportunities where it can adopt an option earn-in and joint venture model without the issuance of vendor shares. By identifying geological teams that have already expended the time and capital to assemble top quality, advanced projects, with a particular emphasis gold projects in Tier 1 jurisdictions, Management’s time can be shared across a number of different projects, as the geological teams already in place will be managing the approved exploration and development programmes.
For further information please contact:
Paul Loudon CEO & Director
For further information please contact:
Tel: + 1 (604) 681 4653
www.essexminerals.com
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.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined under the U.S. Securities Act) absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.