Halifax, Nova Scotia, Silvore Fox Minerals Corp. (the "Corporation") is pleased to announce that it has executed a Letter of Intent (LOI) with China Nonferrous Metals Exploration Corp. (CNME) for a private placement whereby CNME will purchase 33,750,000 common shares of SFX at a price of $0.04 per share for gross proceeds of $1,350,000.00 CDN. It is anticipated that a Formal Agreement and closing will be completed on or before November 9th, 2009.
Other provisions of the LOI and Formal Agreement will provide for the following:
- CNME shall have a 'right of first refusal' to fund any production proposals at SFX's flagship property, Coxheath, for one year from the date of final closing
- CNME has the right to nominate persons (acceptable to SFX) to the Board of Directors of SFX and the pending Board of Advisors in accordance with CNME's percentage ownership in SFX's outstanding common shares
- CNME shall have right of first refusal to fund any proposed future financings within two weeks of notice of a proposed financing; for a period of one year
- SFX will consult with CNME for exploration budget approvals
- CNME will have a right to subscribe to all future equity issuances to maintain its common share ownership at a minimum of 30% of the issued and outstanding common shares of SFX, which right will terminate if CNME's common share ownership decreases to less than 10%
- Due diligence review by CNME
- Boards of Directors approval of Formal Agreement
- Regulatory approval
- SFX shareholders consent
Mr. Nick Zeng, a CNME director states: "We are pleased to be making this investment in Silvore Fox Minerals Corp and Silvore Fox's portfolio of properties and ventures. We look forward to continuing to build our relationship with Silvore Fox".
Mr. Harry Cabrita, President & CEO of SFX states: "We are optimistic that this investment by CNME represents a strategic relationship going forward for the development of SFX's projects. This significant stake being undertaken by CNME in SFX indicate their confidence in SFX management and projects such as our flagship property, Coxheath, a documented Copper Gold porphyry near tide water. SFX is looking forward to working closely with CNME to further advance our shareholder value".
The proceeds for this Private Placement will be utilized by SFX for advancing their exploration projects and augmenting working capital. SFX will issue 3.375 million common shares as a 10% finders fee in this transaction. The shares issued under this transaction will be subject to a four month hold period.
About China Nonferrous Metals Exploration Corp.
CNME is a Canadian corporation majority-owned by Chinese shareholders, including Beijing Donia Resources Co ("Donia"), a state owned entity whose mandate includes exploring for base metal resources worldwide. The Chairman of Donia, Dr. Jingbin Wang, also serves as Executive Director of the China Nonferrous Metals Resource Geological Survey, President of the Beijing Institute of Geology of Mineral Resources, President of Sinotex Mineral Exploration Co, Vice- President of the China Nonferrous Metals Industry Association and Assistant Director of the China Geology Association. Donia's General Manager, Mr. Side Wang, also serves as Vice-Director of the Mineral Resources Management Committee of the China Mining Association.
CNME seeks to invest in mineral exploration and development opportunities in Canada. Its principal office is located at 7-145 Riviera Drive, Markham, Ontario, L3R 5J6. For further information, please contact Lee Ing at (905) 968 1196.
About Silvore Fox Minerals Corp.
Silvore Fox Minerals Corp. is a Bedford, Nova Scotia, Canada based public mineral exploration company. On June 4th, 2008, the Corporation acquired 3214399 Nova Scotia Limited as a wholly owned subsidiary,including 100% earned mineral rights to the claims at Coxheath, Cape Breton Island, Nova Scotia (known as the 'Coxheath Deposit'). The Corporation has an experienced management and geological team. The Coxheath deposit model is believed to be analogous to Pacific Rim volcanogenic porphyry copper deposits. Alteration patterns in association with the regional geological setting further suggest a possible model linking the diorite-hosted porphyry-style mineralization at Coxheath and an epithermal system approximately 4 km to the east.
Silvore Fox Minerals further recent acquisition agreement of the 'Oceanview' property, strengthens SFX's position as a regional mineral exploration company. It is a complimentary prospect to the multi-element Coxheath deposit.
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Fred Bonner, PGeo, vice-president, exploration, is the qualified person as defined by National Instrument 43-101 who has reviewed and approved and verified the technical information contained in this news release.
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