Geodex Minerals Ltd.: Hunter Dickinson's Northcliff Finalizes Sisson Brook Tungsten-Molybdenum Project JV for $17 Million in Exp
25 Oktober 2010 - 9:06PM
Marketwired
Geodex Minerals Ltd. (TSX VENTURE: GXM)(FRANKFURT: G2W) (the
"Company" or "Geodex") is pleased to announce that Northcliff
Exploration Ltd. ("Northcliff") of the Hunter Dickinson group has
signed the Sisson Brook Joint Venture Agreement to acquire a 70%
interest in the Company's Sisson Brook tungsten-molybdenum project
("Sisson Brook Project") in New Brunswick, Canada as per Geodex's
August 31st, 2010 press release.
Northcliff, a private company controlled by Hunter Dickinson
Inc. ("HDI"), has acquired a 70% interest in the Sisson Brook
Project, subject to funding expenditures of up to $17 million.
Northcliff's expenditures include the completion of a $1 million
private placement in Geodex at $0.30 per share, a 160% premium to
the closing price on August 30th when the proposed transaction was
first announced. The private placement will close within 5 business
days. The funds will be used for general working capital purposes,
excluding Sisson Brook.
Northcliff will retain its 70% interest in the Sisson Brook
Project by funding the $1 million private placement as well as
incurring the lesser of $16 million in development and feasibility
expenditures, or the total expenditures required to prepare a
feasibility study and to commence mine construction as contemplated
therein. In addition, as operator, Northcliff will seek to obtain
Sisson Brook Project financing for mine construction and startup.
Geodex has successfully acquired all other ownership interests and
there are no royalties or other ownership interests with respect to
the Sisson Brook Project. The ownership of Sisson Brook will
therefore be Northcliff 70% with Geodex retaining a 30%
interest.
Sisson Brook is the only mineral property asset in Northcliff, a
private company managed and 41% owned by HDI. HDI has a strong
track record established over the past 25 years of locating,
developing, constructing and operating mines globally.
HDI-affiliated companies include Northern Dynasty Minerals Ltd.,
with the large Pebble copper-gold project located in Alaska, and
Taseko Mines Limited, which operates the Gibraltar copper mine
located in British Columbia. These operations demonstrate HDI's
expertise in large, bulk tonnage operations such as Sisson Brook.
This will be a significant strength as Northcliff advances Sisson
Brook through the next phase of development toward the preparation
of a feasibility study for mine construction and development. More
information about HDI and Northcliff can be found at
www.hdimining.com.
We anticipate that the initial program and budget under the
joint venture will be announced within the next month.
Robert Dickinson, Chairman of HDI, said, "Early in my career I
spent considerable energy on developing tungsten projects in
British Columbia. I am pleased to return to the tungsten industry
at a critical juncture in the industry's evolution as the tungsten
price continues to rise and a secure supply source such as New
Brunswick becomes increasingly vital to the global industry."
Jack Maris, Chairman of Geodex commented, "Sisson Brook has been
an important discovery, for Geodex and for New Brunswick. The
Northcliff agreement sets Sisson Brook on a clear development path
towards the opening of a new Canadian mine."
Final TSX-V approval has been received for Geodex's joint
venture and private placement with Northcliff.
ON BEHALF OF THE BOARD OF DIRECTORS
GEODEX MINERALS LTD.
Mark Fields, President & CEO
Forward Looking Statement
Certain information regarding the Company contained in this
press release may constitute forward-looking statements within the
meaning of applicable securities laws. Forward-looking statements
may include estimates, plans, opinions, forecasts, projections or
other statements that are not statements of fact. Although the
Company believes that expectations reflected in such
forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. The Company
cautions that actual performance will be affected by a number of
factors, many of which are beyond the Company's control, and that
future events and results may vary substantially from what the
Company currently foresees.
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.
Contacts: Geodex Minerals Ltd. Investor Relations (604) 689-7771
or Toll free: 1-888-999-3500 (604) 689-5528 (FAX)
info@Geodexminerals.com www.GeodexMinerals.com
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