NGEX Minerals Reports Q3 2019 Results
NEWS RELEASE
NGEX MINERALS REPORTS Q3 2019 RESULTS
VANCOUVER, NOVEMBER 27, 2019 - NGEx Minerals Ltd. (TSXV: NGEX) (“NGEx Minerals” or the
“Company”) is pleased to announce its results for the three and nine months ended September 30,
2019.
Q3 2019 HIGHLIGHTS AND OUTLOOK
Completion of Spin-out Arrangement
On July 17, 2019, Josemaria Resources Inc. (“Jose maria”) and NGEx Minerals, a then wholly-owned
subsidiary of Josemaria, completed a plan of arra ngement under the Canada Business Corporations Act
whereby Josemaria transferred to NGEx Minerals its wholly-owned subsidiaries that directly or indirectly
hold its 63% interest in the Los Helados project in Chile (the “Los Helados Project”), the Nacimientos
properties in Argentina (“Nacimientos”), and the La Rioja properties in Argentina (“La Rioja”), along with
$7.3 million in cash and certain liabilities totaling $0 .3 million (the “Arrangement”). In exchange, NGEx
Minerals issued to Josemaria 124,793,652 common shar es of the Company, which were subsequently
distributed by Josemaria to its shareholders on a pro rata basis such that Josemaria shareholders
received one (1) common share of NGEx Minerals for every two (2) Josemaria common shares held.
The Arrangement was designed to provide the newly spun -out entity, NGEx Minerals, more flexibility in
advancing and making additions to its exploration portfolio, while avoiding dilution to the advanced-
stage exploration project retained by Josemaria. With the Arrangement completed, management is
excited to move forward in creating shareholder value through exploration success and opportune
acquisitions of quality projects to its roster. The Company’s current focus is copper-gold and gold
projects but going forward it may also consider ot her commodities with an em phasis on the quality and
value creation potential of each opportunity rather than a strict commodity fo cus. The overall objective
of the Company is to position itself as a top tier mineral exploration-development investment.
The NGEx Minerals common shares began trading on the TSX Venture Exchange on August 20, 2019
under the trading symbol “NGEX”.
NGEx Minerals Enters Option to Acquire Valle Ancho Project and Commences Exploration
The Company recently commenced an initial exploratio n program at the recently optioned Valle Ancho,
Interceptor and Filo de las Vicuñas properties (colle ctively, the “Valle Ancho Project”), located in the
Province of Catamarca, Argentina. The highly pr ospective ground covers a large area, totaling
approximately 100,000 Ha (1,000 km 2), situated on the Argentine side of Chile’s prolific Maricunga Gold
Belt.
NGEx Minerals’ initial exploration program at th e Valle Ancho Project will focus on review and
compilation of historical data, analysis of satellit e imagery, field examination, sampling and mapping of
existing prospects, and the undertaking of an airborne geophysical survey over the project area. The
main objectives of this initial pass are to identify, develop and prioritize targets for further evaluation
and potential drill testing. This initial exploration campaign is expected to continue into early 2020.
The Company’s interest in the Valle Ancho Project is subject to an option agreement with the Province
of Catamarca, Argentina, which allows the Company to earn a 100% interest by making US$8.2 million in
expenditures on the project over a two-year pe riod. The Valle Ancho Project has been largely
underexplored, with no significant work undertaken in the area for almost 20 years, despite past
exploration workings yielded some interesting result s including drill intercepts of 62 metres at 1.0 g/t
gold, and 108 metres at 1.0 g/t gold.
“Following the successful spin-out of NGEx Minera l s f r o m J o s e m a r i a , w e h a v e w a s t e d n o t i m e i n
executing on our strategy of creating shareholder value by strengthening our asset portfolio, through
acquisition of quality assets and successful, focu sed exploration,” commented Wojtek Wodzicki, the
Company’s President and Chief Executive Officer. “The addition of Valle Ancho fits well with our existing
exploration assets and plays to our key strength s, including our team’s extensive experience in
Argentina, and Catamarca in particular. We are excite d to have just launched our maiden program at
Valle Ancho, which will generate targets for future testing and drilling, and look forward to continuing
the Company’s legacy as an incubator for quality exploration projects.”
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
2019 2018 2019 2018
Exploration and project investigation 604 443 2,759 4,223
General and administration (“G&A”) 481 250 1,009 1,164
Net loss 1,074 706 3,758 5,377
Basic and diluted loss per share 0.01 0.01 0.01 0.01
The financial information in this table was selected from the Company’s condensed interim consolidated financial statements
for the three and nine months ended September 30, 2019 (the “Financial Statements”), which are available on SEDAR at
www.sedar.com and the Company’s website www.ngexminerals.com.
SELECTED FINANCIAL INFORMATION
(In thousands of Canadian dollars)
September 30, December 31,
2019 2018
Cash 6,930 256
Working capital (deficit) 6,796 79
Mineral properties 4,834 4,535
Total assets 12,046 5,003
The financial information in this table was selected from the Financial Statements, which are available on SEDAR at
www.sedar.com and the Company’s website www.ngexminerals.com.
The Company incurred a net loss of $1.1 million du ring the three months ended September 30, 2019,
comprised of $0.6 million and $0.5 million in explorat ion and project investigation costs and G&A costs,
respectively, compared to a net loss of $0.7 millio n for the three months ended September 30, 2018.
The variance is primarily due to a larger enviro nmental baseline program being undertaken in the
current period at the Los Helados Project relative to the 2018 comparative period, and higher share-
based compensation costs, a non-cash cost, in the three months ended September 30, 2019, which
relate to the grant of stock options to officers, di rectors and other eligible persons of the Company in
September 2019, and the subsequent vesting thereof.
LIQUIDITY AND CAPITAL RESOURCES
As at September 30, 2019, the Company had cash of $6.9 million and net working capital of $6.8 million,
compared to cash of $0.3 million and net working ca pital of $0.1 million, as at December 31, 2018. The
increase in the Company’s cash and net working capita l is due primarily to the receipt of $7.3 million in
cash from Josemaria pursuant to the Arrangement, as described above.
The Company plans to use the majority of its cash to wards its key exploration projects in South America
and general corporate activities. Based on the Comp any’s financial position at September 30, 2019, the
Company is well positioned to advance these initiati ves. On an ongoing basis, the Company evaluates
and adjusts its planned exploration and administrative activities to ensure that adequate levels of
working capital are maintained.
ABOUT NGEX MINERALS
NGEx Minerals is a copper and gold exploration co mpany based in Canada with projects in Chile
and Argentina. NGEx Minerals holds the large- scale Los Helados copper-gold deposit, located
in Chile's Region III, as well as other early-stage pr ojects located in Argentina. NGEx Minerals is the
majority partner and operator for the Los Helados Project, subject to a Joint Exploration Agreement with
its exploration partner in Chile, Pan Pacific Copper Co. Ltd. NGEx Minerals is actively seeking to add to
its portfolio of projects as part of its overall growth strategy. The Corporation is listed on the TSX
Venture Exchange (“TSXV”) under the trading symbol “NGEX”.
ADDITIONAL INFORMATION
NGEx Minerals is listed on the TSXV under the tr ading symbol "NGEX". The TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the TSXV) accept s responsibility for the
adequacy or accuracy of this news release.
The information contained in this news release was accurate at the time of dissemination, but may be
superseded by subsequent news release(s). The Comp any is under no obligation nor does it intend to
update or revise the forward-looking information, whet her as a result of new information, future events
or otherwise.
QP AND TECHNICAL INFORMATION
Technical information in this news release has been reviewed and approved by Bob Carmichael, B.A.Sc.,
P.Eng., who is the Qualified Person as defined by NI 43-101. Mr. Carmichael is Vice President,
Exploration for the Company.
Reverse circulation drilling was completed at Vall e Ancho by Eldorado Gold Corporation during the
1995/1996 season. NGEx Minerals has reviewed the original annual exploration report detailing the
drilling and sampling methodology as well as the origin al assay certificates. Samples were collected
every two metres and were split twice resulting in 1/8 of the original sample being retained for analysis.
Field duplicates were included in the sample batche s; however, no assay standards or blanks were
included. Analyses were completed by Bondar Cle gg Inchcape Testing Services in North Vancouver,
Canada. Bondar Clegg Inchcape was an accredited assay lab which was independent of Eldorado Gold
Corporation. Gold analyses were by fire assay fusion with AAS finish on a 30g sample. In addition, NGEx
Minerals has reviewed chips from the sample inte rvals. Drilling, sampling and assaying was done to
industry standards at the time, and NGEx Minerals has no reason to believe that the analytical data
reported here is inaccurate, however the Company has not completed its own sampling to
independently verify the assay results.
On behalf of NGEx Minerals,
Wojtek Wodzicki,
President and CEO
For further information:
Amanda Strong, Investor Relations, Canada: +1 604 689 7842 or [email protected]
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the news release constitutes “forward-
looking information” and forward- looking statements” with in the meaning of applicable securities
legislation (collectively, “forward-looking informatio n” or “forward-looking statements”) concerning the
business, operations, financial performance and co ndition of NGEx Minerals. The forward-looking
information contained in this news release is base d on information available to the Company as of the
date of this news release. Except as required unde r applicable securities legislation, the Company does
not intend, and does not assume any obligation, to update this forward-looking information. Generally,
any statements that express or in volve discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or futu re events or performance, (often, but not always,
identified by words or phrases such as "plans", "exp ects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", “projects” , “estimates”, “budgets”, “scheduled”,
“forecasts”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “potential”, “possible”, "anticipates"
or "does not anticipate", or "believes", or variati ons of such words and phrases or statements that
certain actions, events, conditions or results “will”, "m ay", "could", "would", “should”, "might" or "will
be taken", "will occur" or "will be achieved" or the negative connotations thereof and similar
expressions) are not statements of historical fact and may be forward-looking statements.
All statements other than statemen ts of historical fact may be forward-looking statements. Forward-
looking information is necessarily based on estimate s and assumptions that are inherently subject to
known and unknown risks, uncertainties and other fact ors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially different from those expressed
or implied by such forward-looking information, including but not limited to: risks and uncertainties
relating to, among other things, the inherent uncertai nties regarding Mineral Resource estimates, cost
estimates, changes in commodity prices, currency fluctuation, financings, unanticipated resource
grades, infrastructure, results of exploration acti vities, cost overruns, availability of materials and
equipment, timeliness of government approvals, taxa tion, political risk and related economic risk and
unanticipated environmental impact on operations as well as other risks, and uncertainties and other
factors, including, without limitation, those referred to in the “Risks and Unce rtainties” section of the
Management Discussion & Analysis for the thre e and nine months ende d September 30, 2019 (the
“MD&A”), and elsewhere, which may cause the actu al results, level of activity, performance or
achievements of the Company to be materially different from those expressed or implied by such
forward-looking information.
The Company believes that the ex pectations reflected in the forward-looking statements and
information included in this news release are reas onable but no assurance can be given that these
expectations will prove to be correct and such forw ard-looking statements and information should not
be unduly relied upon. This statement and informatio n i s a s o f t h e d a t e o f t h e n e w s r e l e a s e . I n
particular, this news release contains forward-lo oking statements or information pertaining to: the
assumptions used in the Mineral Resources estimate s for the Los Helados Project, including, but not
limited to, geological interpretation and grades; assu mptions made in the interpretation of drill results,
geology, grade and continuity of mineral deposi ts; expectations regarding access and demand for
equipment, skilled labour and services needed for exploration and development of mineral properties;
and that activities will not be ad versely disrupted or impeded by exploration, development, operating,
regulatory, political, community, econ omic and/or environmental risks. In addition, this news release
may contain forward-looking statemen ts or information pertaining to: the Company's plans for the field
season currently underway, including the expected timi ng of results related thereto; the Corporation’s
ability to execute its planned work programs at Valle Ancho; potential of identifying prospective targets
at the Valle Ancho Project that warrant further eval uation and potential drill testing; the results and
impact of future exploration at the Valle Anch o Project; assumptions and interpretations around
historical exploration results obtained in regards to the Valle Anch o Project; the exploration potential of
the Valle Ancho Property; assumptions and interpre tations around the Valle Ancho Project’s location
relative to the Maricunga Gold Belt and the potent ial correlation with respect to prospectivity; the
ability of the Company to secure additional fi nancing and/or the quantum and terms thereof;
exploration and development plans and expenditures; the timing and nature of work undertaken to
advance the Los Helados Project; the success of future exploration activities; potential for the discovery
of new mineral deposits; ability to build shareholde r value; expectations with regard to adding to
Mineral Resources through exploration; expectatio ns with respect to the conversion of inferred
resources to an indicated resources classificati on; ability to execute the planned work programs;
estimation of commodity prices, Mineral Resources, estimations of costs, and permitting time lines;
ability to obtain surface rights and property interests; currency exchange rate fluctuations; requirements
for additional capital; government regulation of mining activities; environmental risks; unanticipated
reclamation expenses; title disputes or claims; limitations on insurance coverage; and other risks and
uncertainties.
Forward-looking information is based on certain assumptions that the Company believes are reasonable,
including that the current price of and demand for commodities will be sustained or will improve, the
supply of commodities will remain stable, that the general business and economic conditions will not
change in a material adverse manner, that financing will be available if and when needed on reasonable
terms and that the Company will not experience any material labour dispute, accident, or failure of plant
or equipment. These factors are not, and should no t be construed as being, exhaustive. Although the
Company has attempted to identify important factors that would cause actual results to differ materially
from those contained in forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated, or intended. Ther e can be no assurance that such statements will prove
to be accurate, as the Company’s ac tual results and future events could differ materially from those
anticipated in such statements, as a result of th e factors discussed in th e “Risk and Uncertainties”
section of the MD&A, and elsewhere. All of the forward-looking information contained in this document
is qualified by these cautionary statements. Read ers are cautioned not to place undue reliance on
forward-looking information due to the inherent uncertainty thereof.
Statements relating to "Mineral Resources" are d eemed to be forward looking information, as they
involve the implied assessment, based on certai n estimates and assumpti ons, that the Mineral
Resources described can be profitably produced in the future.
Cautionary Note to U.S. Readers
Information concerning the mineral properties of the Company contained in this news release has been
prepared in accordance with the requirements of Canadian securities laws, which differ in material
respects from the requirements of se curities laws of the United States applicable to U.S. companies
subject to the reporting and disclosure requirement s of the United States Securities and Exchange
Commission.