VANCOUVER, April 4, 2013 /PRNewswire/ - TerraX Minerals
Inc. (TSX-V: TXR; Frankfurt: TXO) has agreed to grant an option
to Virginia Mines Inc. (TSX: VGQ) to purchase a 2% NSR on its
Northbelt Property in Yellowknife,
NWT, Canada. To purchase
this Royalty Option Agreement Virginia will pay TerraX $200,000, payment made by the issuance of 20,000
common shares of Virginia at a deemed price of $10.00 per share. These shares will be subject to
a 4-month regulatory hold period. The option will entitle Virginia
to purchase a 2% net smelter return on production within the
Northbelt property by payment of $2,000,000 within 3 months following commencement
of production.
In addition Virginia will purchase through a
non-brokered private placement 4,000,000 common shares of TerraX at
a price of $0.20 per share for gross
proceeds of $800,000. The private
placement will include ½ warrant per share and each warrant will
entitle Virginia to one common share at an exercise price of
$0.30 per share for a period of 36
months.
Finally, TerraX will concurrently raise up to an
additional $1,200,000, on terms
substantially similar to the Virginia Units, through a non-brokered
private placement to bring the total funding raised up to
$2,000,000. The proceeds of these
placements will be earmarked for exploration over the next year on
the Northbelt Property.
The Royalty Option Agreement and the private
placements are subject to TerraX and Virginia obtaining regulatory
approvals from the TSX Venture Exchange and the TSX respectively
and execution of a final royalty agreement and private placement
subscription agreements.
Joe Campbell,
president of TerraX states, "TerraX is very pleased to be the
first investment by Virginia in a junior mining company outside of
Quebec, and we take this as a vote
of confidence not only in the high potential of the Northbelt
Property, but also in the technical team underpinning TerraX's
exploration efforts."
On behalf of the Board of Directors
"JOSEPH CAMPBELL"
Joseph Campbell, P.Geo
President
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 this release.
This news release contains forward-looking
information, which involves known and unknown risks, uncertainties
and other factors that may cause actual events to differ materially
from current expectation. Important factors - including the
availability of funds, the results of financing efforts, the
completion of due diligence and the results of exploration
activities - that could cause actual results to differ materially
from the Company's expectations are disclosed in the Company's
documents filed from time to time on SEDAR (see www.sedar.com).
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The company disclaims any intention or obligation,
except to the extent required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE TerraX Minerals Inc.
