ATEX Amends Valeriano Option Agreement Extending Term from 4 to 5 Years
25 Adelaide Street East, Suite 1900, Toronto, Canada, M5C 3A1
ATEX Amends Valeriano Option Agreement
Extending Term from 4 to 5 Years
VANCOUVER, British Columbia, January 22, 2020 - ATEX Resources Inc. (TSXV:ATX)
("ATEX") is pleased to announce that it has amended the terms of the Valeriano option agreement
with Sociedad Contractual Minera Valleno, the vendor of the Valeriano Copper Gold Porphyry
Project (“Valeriano”). The Valeriano property, located in Chile's prolific El Indio Belt and adjacent
to the Antofagasta / Barrick El Encierro joint venture, hosts a large copper gold molybdenum -
bearing porphyry system.
The amended agreement extends the option period over five years from the previously executed
four year term agreement. The amendment allows ATEX further flexibility with its exploration
plans for Valeriano by providing for two full exploration seasons for drilling activities, in addition
to the current exploration season, in order to complete its initial work commitment.
The amended option agreement extends the first work commitment period from August 29, 2021
to August 29, 2022 and moves the US$3.5 million second year payment and subsequent
payments forward one year at a cost of US$250,000 payable on the August 29, 2021.
Under the terms of the amended option agreement (all figures are US$), in order to acquire 100%
of the Valeriano concessions, ATEX may make payments of $12.25 million over five years as
follows: $200,000 upon signing (paid); $300,000 upon the commencement of drilling; $250,000
on the second anniversary of signing; $3.5 million on the third anniversary of signing; and, $8.0
million on the fifth anniversary. Half of the $3.5 million payment may be paid in ATEX common
shares at the option of ATEX and half of the final $8.0 million payment may be paid in ATEX
common shares at the vendor’s option.
In order to exercise the Valeriano option, ATEX must incur work expenditures of $15.0 million
over the five year term of the option as follows: $10.0 million spent during the first three years
including 8,000 metres of drilling; and, $5.0 million over the final two years of the agreement.
Following completion of the first three years of work expenditure commitments and making the
required payments, ATEX will earn a 49% interest in the Valeriano concessions.
By completing all expenditures and making all required payments by the fifth anniversary date,
ATEX will acquire a 100% interest in the Valeriano property subject to a net smelter royalty of
2.5%. The terms of the initial option agreement are described in an ATEX press release dated
September 23, 2019.
NI 43-101 and Qualified Person Statements
The scientific and technical information in this press release has been reviewed and approved by
David R. Hopper, a Qualified Person as defined by NI 43-101 Standards for Disclosure for Mineral
Projects. David Hopper is a Chartered Geologist of the Geological Society of London, Fellow No.
1030584, and has over 25 years of relevant experience in exploration of porphyry-epithermal
deposits. He resides in Santiago, Chile and is independent of ATEX within the meaning of NI 43-
101.
25 Adelaide Street East, Suite 1900, Toronto, Canada, M5C 3A1
A National Instrument 43-101 ("NI 43-101") compliant technical report on the Valeriano Project,
dated November 25, 2019, has been filed on www.sedar.com.
About ATEX Resources Inc.
ATEX is a TSXV-listed minerals exploration company focused on the acquisition, development
and monetization of projects throughout the Americas.
On behalf of ATEX Resources Inc.
Carl Hansen, CEO
For more information, email [email protected] or call 604 684 7160.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements, including predictions, projections and forecasts.
Forward-looking statements include, but are not limited to: the success of exploration activities; mine
development prospects; and, potential for future metals production. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans", "planning", "expects" or "does not expect",
"continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate",
or describes a "goal", or variation of such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this
news release including statements regarding the acquisition of the Valeriano property, the receipt of TSXV
approvals, and future exploration activities and the result of those exploration activities.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and
other factors which may cause the actual results, performance or achievements to be materially different
from any future results, prediction, projection, forecast, performance or achievements expressed or implied
by the forward-looking statements. Such factors include, among others, changes in economic parameters
and assumptions, the interpretation and actual results of current exploration activities; changes in project
parameters as plans continue to be refined; the results of regulatory and permitting processes; future metals
price; possible variations in grade or recovery rates; failure of equipment or processes to operate as
anticipated; labour disputes and other risks of the mining industry; the results of economic and technical
studies, delays in obtaining governmental approvals or financing or in the completion of exploration, as well
as those factors disclosed in ATEX's publicly filed documents.
Although ATEX has attempted to identify important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance
that forward-looking statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers should not place undue reliance
on forward-looking statements.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this press release.