NGEx Signs Definitive Agreement With Goldgroup Resources on Caballo Blanco Project, Mexico
November 25, 2009
VANCOUVER, BRITISH COLUMBIA--(Marketwire
- Nov. 25, 2009) - NGEx
Resources Inc. (TSX:NGQ) ("NGEx"
or the "Company") reports
that it has entered into a Share Purchase Agreement (the "Agreement") with Goldgroup
Resources Inc. ("Goldgroup") to sell a 100% interest in its wholly owned subsidiary,
which directly and indirectly holds an option to acquire a 70% interest in the
Caballo Blanco Project located in Mexico. Pursuant to the Agreement, Goldgroup
will pay NGEx
consideration, comprising; staged cash payments totaling CDN$6 million and the
issue of 9 million shares of Goldgroup at a deemed price of $1.00 per share
(the "Consideration Shares"). Goldgroup is seeking to complete a going public
event (the "Going Public Event") which will result in a listing of its shares.
If the value of the Consideration Shares after Goldgroup's Going Public Event
is less than CDN$6.3 million, then Goldgroup shall issue additional shares such
that the aggregate value of the Consideration Shares shall be equal to no less
than CDN$6.3 million. In addition and pursuant to the Agreement, NGEx will receive a 1.5% net smelter return royalty and,
upon the project reaching commercial production, shall receive a one time
advance royalty payment in the amount of CDN$5.0 million.
Wojtek Wodzicki, President and
CEO of NGEx, commented, "This transaction is in line with our strategy to
realize value from our portfolio of projects. For our earnable interest in
Caballo Blanco, we receive a cash payment plus the opportunity to participate
in the project's upside through ownership of Goldgroup's shares and an NSR.
Goldgroup has a strong, experienced management team with a strategy to build a
leading Mexican-focused gold company. Goldgroup is eager to move the project
forward and we look forward to their success."
On behalf of the Board,
Wojtek Wodzicki, President and CEO
NGEx Resources Inc.
(604) 689-4250 (FAX)email@example.com