Murgor Resources Inc. has reached an agreement in principle with China Nonferrous Metals Exploration Corp. (CNME) for a private placement whereby CNME would purchase 8.1 million common shares of Murgor at a price of 10 cents per share, for proceeds to Murgor of $810,000.
"We are very pleased with the investment by CNME," stated Andre Tessier, president and chief executive officer of Murgor. "Clearly CNME recognizes the value of Murgor's VMS deposits in Canada's prolific Flin Flon belt, which continues to attract the interest of premier mining companies worldwide. Final property payments to HudBay Minerals Inc. will be made shortly and we will explore ways to bring our properties to production as quickly as possible."
"We are pleased to be making this investment in Murgor Resources," said Nick Zeng, a CNME director. "Murgor's advanced Wim and Hudvam deposits, along with its significant prospective land package, represent attractive development and exploration opportunities. We look forward to continuing to build our relationship with Murgor."
Murgor will use the proceeds from the proposed private placement primarily for working capital and corporate purposes.
After the closing of the proposed private placement, there will be 54,168,782 common shares of Murgor issued and outstanding, of which CNME will hold 14.95 per cent.
In connection with the proposed private placement, Murgor will give CNME a right to participate in future equity financings by Murgor, so that CNME may retain its share ownership percentage in Murgor. Murgor may also issue 486,000 common shares as a finder's fee.
Closing of the proposed private placement is conditional upon preparation of standard documentation and regulatory approval, including that of the TSX Venture Exchange. Closing is expected to take place on Aug. 17, 2009. Under applicable securities legislation, the shares to be issued to CNME in the proposed private placement will be subject to a four-month hold period.
About China Nonferrous Metals Exploration Corp.
China Nonferrous Metals Exploration Corp. is a Canadian corporation majority-owned by Chinese shareholders. It seeks to invest in mineral exploration and development opportunities in Canada.
About Murgor Resources
Murgor Resources Inc. is a mineral exploration and development company focused on copper, zinc and gold deposits in Canada . In 2006, the company acquired the right to earn a 100% interest in three deposits: the Hudvam and Wim deposit in Manitoba and the Fon deposit in Saskatchewan from HudBay Minerals (TSX:HBM). The exploration target for Murgor consists of polymetallic massive sulphide deposits in one of the most prolific greenstone belts in Canada and the world. Murgor also owns a 1% NSR royalty in the Barry Gold Mine and an interest in the advanced Windfall Gold Project in Quebec .
The table below shows the total 43-101 compliant resource for Murgor's Hudvam, Wim and Fon deposits*.
For statement of resources, see Murgor Press Releases: Feb. 20, 2007 for Fon; Aug. 28, 2008 for Hudvam and Sept. 09, 2008 for Wim.
*All resources are NI 43-101 compliant.
Andre C. Tessier, P.Geo., P.Eng. and President & CEO for Murgor Resources Inc. is a Qualified Person as defined by NI-43-101 and is responsible for this press release.
FOR FURTHER INFORMATION PLEASE VISIT MURGOR’S WEBSITE AT WWW.MURGOR.COM OR CONTACT:
André C. Tessier, President & CEO
MURGOR RESOURCES INC.
Tel: (613) 546-7503 or 1-888-891-3330
Fax: (613) 546-7318
E-mail: info@murgor.com
Web site: www.murgor.com
This news release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the proposed financing, payments to HudBay, potential mineralization, resources and reserves, exploration results, and future plans and objectives of Murgor, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Murgor's expectations are exploration risks detailed herein and from time to time in the filings made by Murgor with securities regulators.
Neither 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.
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