Rouyn-Noranda, Québec, Canada, July 16, 2020. Fielded Exploration Inc. (TSXV: FLX) (Frankfurt: F7E1) is pleased to announce that it has entered into a Mineral Option Agreement with Vantex Resources Ltd. (TSXV: VAX) of Vancouver under which Fieldex can acquire the Galloway Property, comprised of 98 claims in Dasserat Township, Québec.
In order to acquire a 100% interest in the Galloway Property, Fieldex must pay $250,000 to Vantex Resources upon approval of the Mineral Option Agreement by the TSX Venture Exchange (the “Effective Date”), pay an additional $750,000 to Vantex Resources in three tranches of $250,000 each over a period of nine months from the Effective Date, for a total of $1 million, and issue 3,000,000 shares to Vantex Resources within ten days of the Effective Date. Fieldex and Vantex Resources Ltd. are dealing at arm’s length and no finder’s fee is payable in connection with the acquisition of the Galloway Property by Fieldex.
In addition, in the event Fieldex exercises its option and thereafter receives a technical report qualifying a minimum of 500,000 ounces of gold as “indicated resources” on the Galloway Property, it must pay an additional $500,000 to Vantex Resources. In the event that the technical report qualifies a minimum of 1,000,000 ounces of gold as “indicated resources” on the Galloway Property, the amount of the payment will increase to $1,000,000.
Fieldex is also pleased to announce that it will effect a private placement of units in a maximum amount of $1 million at a price of $0.12 per unit. Each unit will be comprised of one common share and one common share purchase warrant. Each warrant will entitle its holder to acquire one additional Fieldex common share at a price of $0.225 for a period of three years.
The proceeds from the private placement may be used by Fieldex for payments under the Mineral Option Agreement or for general working capital purposes.
Fieldex will pay a finder’s fee of 8% cash and 8% finder’s warrants, each exercisable for one unit at a price of $0.12 for a period of three years from the completion of the closing of the private placement. Closing is expected to take place on or before July 31, 2020. The private placement will be effected pursuant to prospectus exemptions under applicable securities regulations. The common shares and warrants issued by Fieldex at closing will be subject to a four-month hold period. PowerOne Capital Markets Limited will act as finder in connection with the private placement.
The Mineral Option Agreement and private placement are subject to approval by the TSX Venture Exchange.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States unless registered under the U.S. Securities Act or unless an exemption from registration is available.
Fieldex is a mineral resource company actively exploring in Québec on acquiring and exploring precious metals deposits located in the province of Québec.
Except for historical information, this news release may contain certain “forward looking statements”, including those relating to the Mineral Option Agreement with Vantex Resources Ltd. and the proposed private placement by Fieldex Exploration Inc. (“Fieldex”). These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the expectations and projections of Fieldex. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the exercise of the option under the Mineral Option Agreement or the proposed private placement, or if any of them do so, what benefits Fieldex will derive therefrom. A more detailed discussion of the risks inherent in Fieldex’s business is available in documents filed by Fieldex on SEDAR at www.sedar.com. Unless otherwise stated, all forward-looking statements in this news release speak only as of the date of this news release and Fieldex does not have any obligation to update such statements, except to the extent required by applicable securities laws.
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 the release.
For more information, please contact:
President & Chief Executive Officer
Tel.: (819) 762-0609
Fax: (819) 762-0097
About Fokus Mining
We are a mineral resource company actively acquiring and exploring precious metal deposits located in the province of Quebec. In implementing this major undertaking within the Canadian mining industry, we are determined to develop the full potential of the opportunity presented by the Galloway project and its Golden Triangle.