Cap-Ex and ITUM Reach Agreement
December 01 2011 - 7:00AM
Marketwired
Cap-Ex Ventures Ltd. (TSX VENTURE:CEV)(OTCQX:CPXVF)(FRANKFURT:X0V)
("Cap-Ex" or the "Company") and Innu Takuaikan Uashat mak
Mani-Utenam ("ITUM") wish to announce that they have signed a first
agreement (the "Agreement") in a series of two planned agreements
regarding the Company's exploration activities on its mining claims
(the "Claims") in Quebec and Newfoundland and Labrador.
The Agreement contains commitments by the Company and ITUM to
negotiate a second, finalized Exploration Agreement (the
"Exploration Agreement") by February 29, 2012 failing which the
Agreement will terminate. The Agreement:
-- provides for the participation of ITUM in environmental monitoring;
-- supports the practice of traditional activities;
-- commits to the restoration of sites;
-- includes socio-economic benefits for ITUM and its members;
-- allows ITUM to benefit from the sale of Claims;
-- sets out a consultation process for future exploration activities; and
-- provides for the negotiation of an Impact and Benefit Agreement (the
"IBA") prior to the development of a mine.
ITUM has informed the Government of Newfoundland and Labrador
that it does not object, and withdraws its earlier objections and
comments, to the Company's Application for Exploration Approval
filed with the Government of Newfoundland and Labrador on April 11,
2011, as modified by the Company's letter to the Government on June
16, 2011, including the work on Block 103 currently subject to an
environmental review by the Government of Newfoundland and
Labrador.
The Agreement calls for a payment of $100,000 to ITUM now and
the issuance to ITUM of 300,000 shares of the Company on execution
of the Exploration Agreement. In addition, the Company at its
election may pay $100,000 to ITUM or issue to ITUM an additional
200,000 shares (the "Annual Payment"). The Annual Payment is
conditional upon the Company completing Exploration Activities of
$100,000 or more on the Claims in the exploration year prior to the
payment being made.
The Agreement further calls for an annual cash payment (the
"Annual Cash Payment") of $100,000. The Annual Cash Payment is
conditional upon the Company completing Exploration Activities of
$100,000 or more on the Claims in the exploration year prior to the
payment being made.
The Company has agreed to work with ITUM to monitor the
environmental and other impacts of exploration activities and will
make a $35,000 annual contribution (the "Annual Impact Monitoring
Commitment") to ITUM to finance such participation by ITUM.
The Agreement states that ITUM will receive a 0.5% gross royalty
on any revenues that the Company may receive from sale of iron ore
products mined in the future on the Claims.
In the event that the Company acquires additional mining claims
within territories over which ITUM has asserted territorial claims,
the Annual Cash Payment, the Annual Impact Monitoring Commitment
and the Annual Share Payment will be increased by that proportion
by which the Claims' total hectares have increased. For example, if
the total hectares of the Claims the Company was exploring
increased from 120,000 to 150,000 (an increase of 25%) the Annual
Cash Payment, the Annual Impact Monitoring Commitment and the
Annual Share Payment would be increased by 25%.
The Exploration Agreement's term is to be for the duration of
the Company's exploration activities. The Agreement has been
approved by the TSX-Venture Exchange.
CAP-EX VENTURES LTD.
Brett Matich, President and CEO
INNU TAKUAIKAN UASHAT MAK MANI-UTENAM
Georges-Ernest Gregoire, Chief
This news release may contain forward-looking statements.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results
may differ materially from those currently anticipated in such
statements.
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: Cap-Ex Ventures Ltd. Investor Relations (604) 669-2279
(604) 602-1606 (FAX)info@cap-ex.cawww.cap-ex.ca Contacts: ITUM
Armand MacKenzie Negotiator (418) 409-5626
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