October 8th, 2014
Vancouver, British Columbia − Cap-Ex Iron Ore Ltd. (TSX-V: CEV) (“Cap-Ex” or the “Company”) has signed an agreement (the “Agreement”) with Tata Steel Minerals Canada Ltd (“TSMC”) in respect of roadway access and DSO exploration over the Company's wholly-owned Block 103 property in western Labrador. Under the terms of the Agreement, the Company has agreed to assist TSMC in obtaining surface rights for a roadway through Block 103 to connect adjoining properties of TSMC. TSMC shall be solely responsible for all work, costs and expenses required to build the roadway and for continued use of the roadway, including maintenance.
In return TSMC has agreed to pay the Company $250k cash and conduct an initial $550k DSO exploration program on Block 103. The exploration program, to be determined by TSMC, will include gravity testing and pit testing of geophysical anomalies previously identified by Cap-Ex and TSMC geologists. The program is to be completed by September 30, 2015 during which period Cap-Ex has granted TSMC exclusivity in regards to exploring DSO prospects on Block 103. Target Map
At any time prior to September 30, 2015, TSMC has the right to advise Cap-Ex that it wishes to enter into a joint venture agreement regarding the DSO potential of Block 103 in which event both parties agree to negotiate in good faith for a period of 90 days. If at any time TSMC decides it does not to continue with the exploration program, or both parties cannot agree on a joint venture agreement, TSMC will pay an additional $200k cash to Cap-Ex in full satisfaction of its exploration commitment under the Agreement.
Graham Harris, CEO states “to date the Company's focus has been on developing the PEA of the 7.8 Billion tonne Magnetite deposit on Block 103. Over the next 12 months we look forward to working closely with our neighbour, TSMC, to explore the DSO potential of Block 103.” (see the Company's news release dated June 27, 2013 for details of the PEA).
The Company also announces the granting, subject to regulatory acceptance, of 1,280,000 incentive stock options to certain officers, directors, consultants and employees of the Company. The options have a term of five years and are exercisable at a price of $0.05 cents per share.
About Cap-Ex Iron Ore Ltd.
Cap-Ex Iron Ore Ltd. is a Canadian listed company, focused on the development of its wholly owned Block 103 Iron Ore Project in the Labrador Trough, near the mining town of Schefferville, Québec. The Block 103 property is strategically located close to an existing railway that can provide a direct link to a shipping port and is adjacent to Tata Steel-New Millennium Iron Corp. LabMag and KeMag deposits and the Tata-New Millennium oxide deposits to the east.
For additional information please visit the Company’s website at www.cap-ex.ca.
CAP-EX IRON ORE LTD.
On behalf of the Board
CEO and Director
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Cautionary Note Regarding Forward-looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Specifically, there are no assurances that the Company will be successful in completing the proposed private placement in whole or in part. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information in this news release is qualified by these cautionary statements and the additional cautionary statements and risk factors contained in our continuous disclosure filings available on SEDAR at www.sedar.com. Forward-looking information contained in this news release is made as of the date hereof and the Company does not assume any obligation to update or revise such information to reflect new events or circumstances save as required under applicable securities legislation.
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