TIDMAEXG
RNS Number : 1986L
AEX Gold Inc
12 May 2022
("AEX" or the "Company")
AEX Gold becomes largest acreage holder in Southern
Greenland
Acquisition of Significant Strategic Mineral Land Package in
South Greenland
TORONTO, ONTARIO - 12 May 2022 - AEX Gold Inc. (AIM: AEXG; TSXV:
AEX), an independent mining company with an unrivalled land package
of gold and strategic mineral assets in Greenland, is pleased to
announce it has acquired mineral exploration licences No. 2020-41
and 2021-11 (the "Licences") covering areas in South Greenland from
Orano group ("Orano") for zero upfront consideration and a royalty
on future production. AEX views these licences as holding
significant opportunity for the discovery of strategic
minerals.
Highlights
-- Significant 3,527.75 km(2) strategic mineral licence area
acquired from Orano, taking AEX's total land package in South
Greenland to 7,615.85km(2) .
-- The acquisition means the Company will become the largest
licence holder in South Greenland, and the third largest in
Greenland, after Anglo American and Greenfield Exploration.
-- The licenses are acquired in exchange for a 0.5% contractual,
gross revenue royalty (GRR), based on any future mineral sales from
the license area. The royalty is capped at US$10 million. Orano has
a right of first refusal on any sales or transfer of licenses.
-- The licence area includes assets which increase the Company's
exposure to metals such as nickel, copper, zinc, lead, titanium,
vanadium, graphite and rare earth minerals, as well as additional
gold resources across the Nanortalik and Tartoq gold belts.
-- Minerals present are categorised as strategic, due to
increasing demand for their use in the global energy transition.
This acquisition now potentially gives AEX shareholders exposure to
29 elements across South Greenland.
-- South Greenland is considered as one of the most prospective
regions for strategic metals and rare earth elements; the region is
currently known to host 1.5% of global rare earth element reserves,
however, the European Commission estimate that with further
exploration this number could increase to as high as 9.2%.
-- AEX's ongoing Mineral System Modelling highlights the
potential of Southern Greenland to host significant strategic metal
deposits. These new licences sit within a interpreted Laurasian
Mineral Belt connecting Eastern Canada through Greenland to
Scandinavia that hosts World Class mineral deposits such as
Voisey's Bay (Canada), Gardar Province (Greenland), and the Kiruna
IOCG belt (Scandinavia).
-- Existing AEX infrastructure, such as the 50 Personnel
Exploration Camp at Nalunaq will be leveraged to explore and
potentially develop the acquired licenses.
Eldur Olafsson, CEO of AEX, commented:
"We are excited to be substantially increasing our exposure to
strategic metals and rare earth elements across Greenland.
Greenland has the potential to become a crucial supplier of these
vital minerals to the Western world, and AEX intends to be a key
player in this.
AEX is now the third largest licence holder in Greenland and the
largest in Southern Greenland. We have an excellent relationship
with the Government which continues to provide strong support to
the mining industry both fiscally and through favourable
legislation. We welcome the opportunity to expand exploration for
strategic minerals following this deal. As with our current
portfolio, AEX will conduct this exploration through the use of
modern, cutting-edge exploration methods and techniques, utilising
our existing camp and infrastructure, and we look forward to
providing updates to the market on this work in due course."
The licence area acquired has significant strategic mineral
potential, including nickel, copper, rare earth elements, zinc,
lead, titanium and graphite. AEX will pay Orano a 0.5% gross
revenue royalty on potential future sales of minerals exploited on
the licences, paid annually and capped at US$10 million ("Royalties
Cap"). The Royalties Cap is subject to an annual inflation
adjustment, with an ultimate cap set such that it cannot exceed the
current market capitalisation of the Company.
The acquisition is subject to approval from the Greenland
Government, the process of which is already underway.
The increasing demand for strategic minerals globally is well
documented, due in part to their usage in the global energy
transition. Greenland currently holds 1.5% of global rare earth
element reserves despite being significantly under explored, with
more deposits being identified annually. AEX's significant land
package therefore provides a unique opportunity for the Company to
become a significant player in this sector. The rise in demand for
these minerals is not only down to the need for alternative energy,
but also due to the rapid growth and innovation in the technology
sector, with rare earth elements and other strategic metals being
used in the manufacturing of almost all high-tech devices.
Europe and the US are currently reliant on supplies of rare
earth elements from China, which also controls 90% of the midstream
of the supply chain. As a result, the potential significance of the
rare earth resource base in Greenland presents an opportunity to
become a vital supplier of strategic minerals to the West.
Targets of specific note across this newly acquired land package
include:
-- The Stendalen Iron-Vanadium-Titanium layered intrusive -
previously explored by GEUS, Softrock Mineral and NunaMineral A/S.
This intrusive is 8km in diameter and hosts a magnetic layer up to
20m thick which has provided historical samples yielding between
1-10.5% Titanium Dioxide (TiO(2) (average of 4.8%) and 226-5,753ppm
Vanadium (V) (average 2,335ppm). Stendalen also host the potential
for Nickel (Ni), Copper (Cu) and Platinum Group Element (PGE)
mineralisation with grab samples proving grades of 0.8% Copper
(Cu), 0.5% Nickel (Ni) and 0.1% Cobalt (Co).
-- North Sava - a continuation of the ground held and explored
by AEX Gold during 2021 within a newly identified IOCG (Iron Ore,
Copper Gold) and Porphyry Copper belt situated in close proximity
to the international airport at Narsarsaq. North Sava has provided
historical grab samples up to 382 g/t Gold (Au), 3.4% Copper (Cu),
3.7% Zinc (Zn), 100 g/t Silver (Ag), 19% Niobium (Nb), 1.7% Uranium
(U), 2.2% Zirconium (Zr).
-- Midternaes an unconformity and ultramafic hosted nickel,
uranium, lead and zinc target within a sublicence adjoining AEX
Gold's Tartoq NP licence and within the Tartoq gold belt in
Southwest Greenland.
-- The Paatusoq Rare Earth Element, Niobium, Tantalum, Zirconium
project is a syenite complex that is 20 km in diameter covering an
area of >240 km(2) within an unexplored section of the Garder
Province that also hosts the Kvanefjeld and Tanbreez rare earth
projects.
-- Numerous gold targets within the Nanortalik gold belt and
several identified graphite targets similar to that already being
explored by AEX at Nørrearm and GreenRoc at the Amitsoq
Project.
Ends
Enquiries:
AEX Gold Inc.
Eldur Olafsson, Director and CEO
+354 665 2003
eo@aexgold.com
Eddie Wyvill, Investor Relations
+44 (0) 7713 126727
ew@aexgold.com
Stifel Nicolaus Europe Limited (Nominated Adviser and
Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 7710 7600
Panmure Gordon (UK) Limited (Joint Broker)
John Prior
Hugh Rich
Dougie Mcleod
+44 (0) 20 7886 2500
SI Capital Limited (Joint Broker)
Nick Emerson
Charlie Stephenson
+44 (0) 1483 413500
Camarco (Financial PR)
Billy Clegg
Emily Hall
Lily Pettifar
+44 (0) 20 3757 4980
For Company updates:
Follow @AexGold on Twitter
Follow AEX Gold Inc. on LinkedIn
Further Information:
About AEX
AEX's principal business objectives are the identification,
acquisition, exploration and development of gold properties in
Greenland. The Company's principal asset is a 100% interest in the
Nalunaq Project, an advanced exploration stage property with an
exploitation licence including the previously operating Nalunaq
gold mine. The Company has a portfolio of gold assets covering
7,615.85km(2) , the largest portfolio of gold assets in Southern
Greenland covering the two known gold belts in the region. AEX is
incorporated under the Canada Business Corporations Act and wholly
owns Nalunaq A/S, incorporated under the Greenland Public Companies
Act.
Forward-Looking Information
This press release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the Company's current expectations regarding future events and the
future growth of the Company's business. In this press release
there is forward-looking information based on a number of
assumptions and subject to a number of risks and uncertainties,
many of which are beyond the Company's control, that could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking information. Such
risks and uncertainties include, but are not limited to the factors
discussed under "Risk Factors" in the Final Prospectus available
under the Company's profile on SEDAR at www.sedar.com. Any
forward-looking information included in this press release is based
only on information currently available to the Company and speaks
only as of the date on which it is made. Except as required by
applicable securities laws, the Company assumes no obligation to
update or revise any forward-looking information to reflect new
circumstances or events. No securities regulatory authority has
either approved or disapproved of the contents of this press
release. Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Inside Information
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No. 596/2014 on
Market Abuse ("UK MAR"), as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018, and Regulation
(EU) No. 596/2014 on Market Abuse ("EU MAR").
Qualified Person Statement
The technical information presented in this press release has
been approved by James Gilbertson CGeol, VP Exploration for AEX
Gold and a Chartered Geologist with the Geological Society of
London, and as such a Qualified Person as defined by NI 43-101
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END
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