Vancouver, British Columbia–(Newsfile Corp. – February 1, 2022) – ALX Resources Corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) (“ALX” or the “Company”) is pleased to announce that it has entered into a transaction with Okapi Resources Limited of Perth, Australia (ASX: OKR) (“Okapi”) whereby Okapi, an arm’s length purchaser, has acquired the 100% interest of the Company in five uranium exploration properties and The Company’s 80% interest in a sixth uranium exploration property (the “Transaction”), all six properties being located in the Athabasca, Northern Saskatchewan, Canada (the “Six Properties”). The transaction was first announced on November 9, 2021 with total consideration payable to ALX of A$2.1 million.
The six properties
ALX has agreed to sell Okapi its current interests in the six properties, as described in the table below:
|Sloth Edward Bay||100%3||42||11,263.15|
1 Two claims are subject to an underlying Gross Overriding Royalty (“GOR”) of 1.0% in favor of an arm’s length supplier with a buyout provision of 0.5% for C$1.0 million , and five claims are subject to an underlying 2.5% Net Smelter Returns (“NSR”) royalty in favor of a non-arm’s length supplier with a buyout provision of 1.0% for 1 .5 million Canadian dollars;
2 Five claims are subject to an underlying NSR of 2.5% in favor of a non-arm’s length supplier with a buyout provision of 1.0% for C$1.0 million;
3 Nine claims are subject to an underlying NSR of 2.0% in favor of an arm’s length seller with a buyout provision of 1.0% for C$1.0 million;
4 A claim is subject to an underlying NSR of 2.0% in favor of an arm’s length supplier with a buyout provision of 1.0% for C$1.0 million;
5 Three claims are subject to an underlying GOR of 2.0% on uranium and gemstones and an underlying NSR of 2.0% on other minerals, each royalty in favor of an unrelated seller of dependence and having no redemption clause.
In return for ALX’s interest in the six properties, Okapi has agreed to pay a total consideration of A$2.1 million consisting of cash payments and Okapi ordinary shares, as follows:
- Payment of AUD 1,050,000 in cash, which includes a deposit of AUD 50,000 paid in November 2021;
- Issuance of 3,227,790 ordinary shares of Okapi representing a value of AUD $1,050,000 (the “Consideration Shares”) calculated using the 10-day volume weighted average trading price of the ordinary shares of Okapi between the 13 January 2022 and January 28, 2022.
Okapi has agreed to grant a 1.5% NSR to ALX on minerals produced from fifty mining concessions included in the transaction that bear no existing underlying royalty. Okapi may at any time acquire up to 50% of ALX’s NSR by paying ALX C$1,000,000.
The Counterparty Shares will be escrowed as follows:
- 33% of the Counterparty Shares will be released six (6) months after the closing date of January 31, 2022 (the “Closing Date”);
- 33% of the Counterparty Shares will be released on the date falling nine (9) months after the Closing Date;
- 34% of the Counterparty Shares will be released on the date which falls twelve (12) months after the Closing Date.
ALX has provided Okapi with a signed voluntary escrow deed for the Consideration Shares reflecting the escrow agreements described above.
Return of ownership
If, at any time during the twenty-four (24) months following the closing date, Okapi decides to relinquish or allow all or part of the six properties to expire, Okapi agrees to first notify ALX of such assignment. If ALX wishes the return of an asset, it will notify Okapi within fourteen (14) working days following receipt of the notice of assignment from Okapi. ALX will pay all transfer fees and agrees to accept ownership interest in an “as is” condition, at its discretion. If ALX does not elect to acquire an Ownership Right, then Okapi may waive or allow an Ownership Right to expire at its discretion.
ALX is based in Vancouver, British Columbia, Canada and its common stock is listed on the TSX Venture Exchange under the symbol “AL”, on the Frankfurt Stock Exchange under the symbol “6LLN” and on the United States OTC market. under the symbol “ALXEF”. “.
ALX’s mandate is to provide shareholders with multiple discovery opportunities by exploring a portfolio of potential mineral properties, which include uranium, nickel-copper-cobalt and gold projects. The Company uses the latest exploration technologies and holds interests in more than 250,000 hectares of prospective land in Saskatchewan, a stable Canadian jurisdiction home to the world’s highest-grade uranium mines, a producing gold mine and the production of base metal mines, both of which are historic.
ALX holds interests in a number of uranium exploration properties in northern Saskatchewan, including a 20% interest in the Hook-Carter Uranium Project, located in the uranium-rich Lake Patterson Corridor, with Denison Mines Corp. (80% interest) operating exploration activities since 2016, a 40% interest in the Black Lake Uranium Project (a joint venture with UEX Corporation and Orano Canada Inc.), and 100% interest in the Gibbons Creek Uranium Project,the Saber Uranium Project and the Javelin and Lake McKenzie Uranium Projects.
ALX also holds 100% interest in the Firebird Nickel Project (now under option to Rio Tinto Exploration Canada Inc., which may acquire up to 80% interest), the V steering wheelNickel/Gold and golden scepter projects, and can earn up to 80% interest in the Alligator Lake Gold Project, all located in northern Saskatchewan, Canada. ALX holds, or may acquire, up to 100% interest in the Electra Nickel Project and the Cannon Copper Project located in the historic mining districts of Ontario, Canada, the Vixen Gold Project (now under option to First Mining Gold Corp., which can earn up to 100% interest in two stages), and in the Draco VMS Project in Norway.
For more information about the company, please visit ALX’s website at www.alxresources.com or contact Roger Leschuk, Director, Corporate Communications at: PH: 604.629.0293 or toll free: 866.629.8368, or by email: [email protected]
On behalf of the Board of Directors of ALX Resources Corp.
Warren Stanyer, CEO and President
Statements contained herein that are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements contained in this press release include: the scheduled release of voluntary escrow consideration shares, the possible return of properties as discussed in this press release and the prospectivity of the Company’s exploration plans. It is important to note that the Company’s actual business results, such as the release of the Escrow Consideration Shares and its future exploration results, could differ materially from those in these forward-looking statements. Risks and uncertainties include that the Consideration Shares may not be released from escrow as expected, that ALX may not be able to fully fund exploration in its exploration projects, including drilling ; the initial discoveries of its exploration projects may prove unworthy of further expenditure; commodity prices may not support the exploration expenditures of its projects; and economic, competitive, governmental, societal, public health, environmental and technological factors may affect the Company’s business, markets, products and share price. Even if we explore and develop our mineral exploration projects, and even if uranium or other metals or minerals are discovered in quantity, the projects may not prove commercially viable. Additional risk factors are discussed in the Company’s MD&A for the nine months ending September 30, 2021, which is available under the Company’s SEDAR profile at www.sedar.com. Except as required by law, we will not update the risk factors in these forward-looking 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112277