Canex Amends Option Agreement to Acquire 100% Ownership of the Excelsior Mine Property at the Gold Range Project Arizona

CALGARY, AB / ACCESSWIRE / September 5, 2023 / CANEX Metals Inc. ("CANEX" or the "Company") and its 100% owned Arizona subsidiary CANEXCO Inc. are pleased to announce that the terms of the Excelsior Mine Property option agreement (previously announced see June 3, 2021, News Release) have been amended. The Excelsior Mine Property consists of 11 lode mining claims and 2 patented mining claims covering 3 past producing historic gold mines, located within the Company's larger Gold Range Project in Arizona. Over the past 2 years CANEX has drilled 72 holes into the main Excelsior deposit, defining a moderately dipping gold mineralized zone up to 400 metres long by 20 to 60 metres wide, that has been traced at least 100 metres down dip.

Terms of the Amendment

CANEX and the underlying property Vendors have agreed to remove all requirements to complete the Stage 2 and Stage 3 earn in obligations of the original agreement in exchange for a one-time share and cash payment. Under the amended option agreement CANEX will earn a 100% interest in the Excelsior Mine Property in exchange for issuing 8,694,170 CANEX Shares and paying US$120,000 in cash. The Vendors will retain a 1.5% net smelter royalty as outlined in the original agreement.

This transaction, plus CANEX shares already owned by the Vendors, gives them 9.9% ownership of the issued shares of the Company. The transaction is subject to final TXS-V approval.

Dr. Shane Ebert President of the Company stated, "CANEX is very pleased to welcome the Vendors as major shareholders of the Company, and their show of confidence in the future of the Company and the district is greatly appreciated. This amended agreement is a key step in moving the highly prospective Gold Range Project forward, as it removes various deadlines and eliminates up to C$3.5 million in potential expenditures and payments over the next 3.5 years. The Company is now better able to advance the Project as market conditions allow and direct exploration efforts across the entire property package."

Foto: Accesswire

Figure 1. Gold Range Property map showing the Excelsior Mine Property which includes 11 lode mining claims and 2 patented claims purchased 100% by CANEX.

Terms of the Original Option

The original option agreement allowed CANEX to earn into the Excelsior Mine Property ("the Property") from the private Vendors over 3 stages. CANEX had completed Stage 1 of the original option and was well underway to completing Stage 2. During stage 1 CANEX earned 25% interest in the Property by issuing 750,000 shares of CANEX and spending US$500,000 on exploration. During stage 2 CANEX could earn 51% interest in the Property by issuing 1 million shares of CANEX (issued), spending US$2,000,000 on exploration including a resource estimate, and paying a bonus payment equivalent to 1% of the gold price on recoverable gold equivalent ounces defined in the measured and indicated resource categories. The deadline for Completing Stages 1 and 2 was May 2024.