Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX Venture: MXI) announces that it has closed its sale of 50% of the Jubilee Zinc Deposit and acquired a controlling interest in Chrysos Capital Corporation (�Chrysos�) and its 100% owned Niaouleni Gold Project:
DISPOSITION OF 50% OF JUBILEE ZINC PROJECT
Merrex has closed its disposition of a 50% interest in its Jubilee Zinc Project and related Nova Scotia zinc exploration properties, its Turkey gold properties including its 90% ownership of Merrex Turkey and its strategic association with AgeanGold and its Red Lake-Birch Lake gold claims.
Additionally, Chrysos will fund a 1,500 metres diamond drilling program estimated at $413,600 on the Jubilee Zinc Project. Drilling will commence in January 2010. After completion of this program the Jubilee Zinc Project will be managed under a 50/50 Joint Venture Agreement with Chrysos as Operator.
NIAOULENI GOLD PROJECT
Concurrently Chrysos acquired a 100% ownership of the Niaouleni Gold Project in Mali. Niaouleni is an advanced-stage gold exploration project comprised of two exploration permits (71 sq km) with a third permit (23 sq km) under application. Niaouleni has been the subject of approximately $10,000,000 of historical exploration and substantially all of the data from those programs has been acquired. A $600,000 exploration program including completion of historical data compilation is beginning immediately.
ACQUISITION OF CONTROL OF CHRYSOS
As consideration for the sale of the 50% interest in Jubilee and the related assets Merrex received from Chrysos 18,675,000 shares, a 39% equity stake, giving Merrex effective control of Chrysos and its 100% owned Niaouleni Gold Project. Chrysos, presently halted pending final filing of its post-closing Qualifying Transaction documents, is expected to resume trading shortly on Tier 2 of the TSX-V under symbol CSX-V.
The board of directors of Chrysos was restructured with the Greg Isenor, John Cumming, Jim Patterson, Walter Henry and Nick Tintor joining and Tom Hickey and Colman O�Brian continuing as directors.
Greg Isenor was appointed President and CEO. John Cumming was appointed Executive Vice-President and Secretary and will serve as General Counsel. Tom Hickey was appointed as Executive Vice President and Chief Financial Officer. Nick Tintor was appointed Chairman of the board.
The 18,675,000 shares are subject to a Value Securities Escrow and will be released 10% on closing and 15% each six months thereafter.
Chrysos plans to change its name to Frontline Gold Corp. at its next shareholders meeting. The name change should be implemented before Q2 2010.
Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource � a winning combination offering investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent presentation.
FOR FURTHER INFORMATION PLEASE CONTACT:
Merrex Gold Inc.
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Tel.: (902) 832-5555
Fax: (902) 832-2223
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Tel.: (514) 939-3989 or (416) 644-2020
Or visit our website at www.merrexgold.com
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
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.