VANCOUVER, BRITISH COLUMBIA - March 5, 2015 - MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG) is pleased to report the Company has entered into an Acquisition Agreement (the “Agreement”) with American Manganese Inc. (“AMY”) to acquire a 100% interest in 166 contiguous hectares covering a known high-purity silica prospect (the “Koot Claims”) (MINFILE No. 082JSW025).
Exploration conducted on the Koot Claims by Cominco (now Teck-Cominco) during the 1980’s outlined a mineralized zone spanning approximately 400 meters consisting of high-purity silicon dioxide (SiO2). Whole rock analysis of composite samples in six of seven shallow diamond drill holes returned values ranging between 98.7% and 99.3% SiO2 (Assessment Report 10160). The zone remains open along strike and at depth to the north, east and west. Cominco also conducted decrepitation testing of rock fragments at 1,000 degrees Celsius from three quartzite outcrops and noted no decrepitation.
The Koot Claims are located in the Golden mining district of southeastern British Columbia, less than four kilometers from the Canadian-Pacific rail line and 2.5 kilometers from Highway 95. The property is accessible by a network of well-maintained logging roads.
“The high purity nature of the Koot prospect aligns well with the Company’s business model of acquiring high-grade, quarry-style mining projects,” stated Company President and CEO Jared Lazerson. “Additionally, the acquisition bolsters the Company’s exposure to the Ferro Silicon market while further strengthening our portfolio of industrial mineral assets.”
In connection with the acquisition, MGX will issue 100,000 shares to AMY as well as grant a 0.5% Net Smelter Royalty (NSR) on any future production. Additionally, the Koot Claims are subject to a 0.5% NSR attributable to the Company’s non-independent Qualified Person Andris Kikauka.
About Ferro Silicon
Ferro Silicon is an essential alloy in the production of iron and steel. Ferro Silicon is used to remove oxygen and increase the strength, resistance and elasticity of steel. It can also serve as the basis to manufacture pre-alloys like Magnesium Ferro Silicon (FeSiMg). According to leading independent research firm Roskill, demand for Ferro Silicon doubled between 2000 and 2013, while projections are forecasting growth of more than eight percent annually over the next five years (Roskill, 2014).