Canex Metals Inc. Signs Letter of Intent to Acquire British Columbia
CANEX METALS INC.
SUITE 800, 808-4TH AVENUE S.W., CALGARY, ALBERTA, T2P 3E8
PH: 403.233.2636 FAX: 403.266.2606
NEWS RELEASE: 18-2 MAY 2, 2018
Trading Symbol: TSX Venture-CANX
For Further Information Contact: Shane Ebert at 1.250.964.2699 or
Jean Pierre Jutras at 1.403.233.2636
Web: http://www.canexmetals.ca
CANEX METALS INC. SIGNS LETTER OF INTENT TO ACQUIRE BRITISH COLUMBIA
PROPERTY PORTFOLIO FROM ALTIUS RESOURCES INC.
Calgary, Alberta - CANEX Metals Inc. (“CANEX” or the “Company”) announces it has signed a Letter of
Intent granting the Company an option to acquire a 100% interest in 5 mineral exploration properties in
British Columbia from Altius Resources Inc. (“Altius”), a wholly held subsidiary of Altius Minerals Corp
(TSX:ALS). The portfolio of British Columbia projects ranges from early stage to more advanced
properties, and comprises high and low sul phidation epithermal targets, porphyry Cu -Au targets, and
mesothermal gold targets. As part of the Agreement Altius would contribute $100,000 toward a
$500,000 financing and upon completion would hold roughly 12% of the outstand ing shares of the
Company.
Dr. Shane Ebert President of the Company commented, “This deal immediately transforms CANEX
into a multi project company with a mix of gold-silver-copper exploration projects ranging from early
stage to drill ready. The deal sees all CANEX cash expenditures going directly toward exploration, with
Altius benefiting from shares in CANEX and retained royalties on the properties. The Altius team has
had tremendous success in identifying and assembling high quality exploration projects globally, and
we are excited to have Altius as the Company’s large st shareholder and a direct financial contributor .
Our 2018 exploration plans include drilling at the high-grade Gibson gold-silver project, advancing the 5
Altius projects with surface exploration programs, and potentially trenching and geophysics”.
Terms of the Agreement
The agreement gives CANEX the exclusive right, at its election, to acquire a 100% interest in any or all
of 5 British Columbia mineral properties from Altius. Four of the five Altius projects are road accessible
and all are located in west central British Columbia. The 5 properties are named Ace, Echo, Fulton,
Red, and Beal.
To earn a 100% interest in the Ace project CANEX must fund the next $100,000 in exploration
expenditures and assume the obligations of an underlying option agre ement which includes payments
of $150,000 in cash or shares and expenditures of $555,000 over 5 years. Following the $100,000
expenditure CANEX would be required to issue 500,000 shares to Altius and a milestone bonus of 1.5
million CANEX shares would be p ayable to Altius if the property achieves a compliant resource
estimate containing in excess of half a million gold equivalent ounces. Altius would retain royalty buy
back rights from the underlying agreement and would hold a 1.75% gross sales royalty on the property
with any royalty payments in the underlying agreement subtracted from the royalty due to Altius.
Acquiring the Ace project will be conditional on satisfactory resolution of a property access issue by
August 15, 2018.
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May 2, 2018
To earn a 100% interest in the Echo, Fulton, Beal, and Red properties CANEX must spend a minimum
of $30,000 on exploration within 15 months, and for each project issue to Altius 500,000 CANEX
shares. Altius will retain a 1.75% gross smelter royalty on each property, and would be entitled to a
milestone bonus of 1.5 million CANEX shares for any property that achieves a compliant resource
estimate containing in excess of half a million gold equivalent ounces.
As the part of the deal Altius will contribute $100,000 to a minimum $500,000 CANEX financing. Terms
of the financing will be announced shortly. Following the financing it is expected that Altius would own
roughly 12% of the outstanding shares of CANEX.
A definitive agreement between CANEX and Altius will be completed shortly and will be subject to
exchange approval by May 31, 2018 . Shane Ebert through his private consulting company Vector
Resources, has been involved in British Columbia project generatio n activities for Altius . Vector
Resources is entitled to 5% of the compensation due to Altius as part of this Agreement.
The BC Properties
CANEX is in the process of constructing a new website and f urther details on the 5 exploration
properties covered by this agreement will be posted on our we bsite at www.canexmetals.com once
complete.
The Ace project is the most advanced of the 5 BC properties and is centered around a historic 1800
metre by 500 metre Cu-Ag-Au in soil anomaly that has never been tre nched or drilled. The property is
prospective for Cu -Au porphyry mineralization and related high -grade veins. Regional airborne
magnetic surveys indicate a district scale fault cuts the area and controls the alignment of 5 known
mineral occurrences contained within the property. T his fault zone is considered to have excellent
potential to host high grade silver and gold mineralization. Historic sampling along or near this fault
zone has returned a chip sample containing 578 grams per tonne ( g/t) Ag over 10 metres . A grab
sample of float from a covered area along the southwest projection of the fault zone returned 17,952 g/t
silver (577 ounces per tonne ), providing an exceptional target for immediate follow up. Altius has an
exploration permit in place fo r Ace, and pending resolution of access issues, a trenching program will
be initiated this summer to test the large soil anomaly and the inferred high-grade structure.
The Echo project targets mesothermal (orogenic) gold mineralization within a till covered area which
has seen very little historic exploration . The claims are centered over a cluster of 90 to 99 percentile
gold in lake sediment anomalies and are in proximity to known placer gold occurrences. The claims
cover 7.5 kilometres of strike length over an inferred covered shear zone known to host alteration and
lode gold mineralization 20 kilometres to the northwest. In 2017 Altius discovered a low-level gold in
soil anomaly over a 300 metre by 500 metre till covered area at Echo. This anomaly remains open for
expansion and most of the 7.5 kilometre strike length of the inferred shear zone remains unexplored.
CANEX plans to initiate soil sampling and mapping at Echo within the next few weeks.
The Fulton project contains a large airborne potassiu m, magnetic, and Th/K ratio anomaly identified in
the 2017 Geoscience BC Search Phase II geophysical survey, located within an area prospective for
Cu-Au porphyry mineralization. In 2017 field work by Altius identified porphyritic intrusions, alteration
zones, and discovered a new zone of copper mineralization which returned composite grab samples
from outcrops of 0.48% Cu and 6.8 g/t Ag over 2 metres, and 0.15% Cu over 4 metres. Further
prospecting, mapping and sampling at Fulton is being planned.
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May 2, 2018
The Red project contains a large high -level alteration system considered prospective for high
sulphidation epithermal mineralization, porphyry Cu -Au mineralization, and peripheral gold-silver base
metal veins. A large gossanous alteration zone is well exposed over an area 1.5 by 1 kilometres. Soil
sampling by Altius in 2017 identified a low level Au -As-Te-Mo soil anomaly overlapping the zone of
alteration and this anomaly remains open for expansion . Historic exploration 1.5 kilometres southwest
of the exposed alteration zone identified vein and stockwork mineralization within a creek bed. Historic
drilling from this zone returned an intersection of 6.93 g/t Au and 34.6 g/t Ag over 0.53 metres . Historic
work has traced this vein and stockwork zone over about 1000 metres of strike length. The next phase
of exploration at Red is being evaluated.
The Beal project is centered around a government survey sample that returned a 99.97 percentile gold
in stream sediment anomaly with in a geo logic and structural setting favorable for mesothermal
(orogenic) gold mineralization. Grass roots exploration by Altius has confirmed anomalous gold in
stream silt samples, located patchy low level gold in soil samples, and has narrowed the prospective
source area for gold at the target. Further evaluation at Beal will include prospecting, mapping and soil
and rock sampling.
About CANEX Metals Inc.
Canex Metals is a Canadian based exploration company focused on acquiring and advancing high
grade gold and silver deposits in stable mining jurisdictions. Company Management has a proven
track record of exploration success, with key personnel being involved in discoveries in Mexico,
Newfoundland, and British Columbia.
Dr. Shane Ebert P.Geo. , is the Qual ified Person for CANEX Metals and has approved the technical
disclosure contained in this news release.
“Shane Ebert”
Shane Ebert,
President/Director
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in t he policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for the historical and present factual information contained herein, the matters set forth in this news release, inclu ding words such as
“expects”, “projects”, “plans”, “anticipates” and similar expressions, are forward -looking information that represents management of CANEX
Metals Inc. internal projections, expectations or beliefs concerning, among other things, future operating results an d various components
thereof or the economic performance of CANEX. The projections, estimates and beliefs contained in such forward -looking statements
necessarily involve known and unknown risks and uncertainties, which may cause CANEX’s actual performance and financial results in future
periods to differ materially from any projections of future performance or results expressed or implied by such forward -looking statements.
These risks and uncertainties include, among other things, those described in CANEX’s filings with the Canadian securities authorities.
Accordingly, holders of CANEX shares and potential investors are cautioned that events or circumstances could cause results to differ
materially from those predicted. CANEX disclaims any responsibility to update these forward-looking statements.