PJX Resources Private Placement And Exploration Update
Toronto, Ontario – December 19, 2012 – PJX Resources Inc. (“PJX” or the “Company”) is pleased to announce a non-brokered private placement (the “Offering”) to raise up to $150,000 through the issuance of flow-through units (the “FT Units”). Each FT Unit will be sold at a price of $0.20 per FT Unit (the “Issue Price”) and will consist of one common share of the Company which will be designated as a flow-through share (the “FT Shares”) for the purposes of the Income Tax Act (Canada) (the “Tax Act”) and one common share purchase warrant (a “Warrant”). Each full Warrant entitles its holder to purchase one common share (a “Warrant Share”) at a price of $0.25 per Warrant Share for a period of 24 months following the closing of the Offering (the “Closing Date”).
The proceeds from the Offering will be used by the Company to incur exploration expenditures on the Company’s properties in British Columbia (the “Properties”). Such exploration expenditures on the Properties will constitute “Canadian exploration expenses” and “flow through mining expenditures” as defined in the Tax Act which can be renounced to purchasers of the FT Units for the 2012 taxation year.
The Offering is subject to the approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a four month hold period.
PJX has completed its fall exploration program and is pleased to announce an update on its progress.
The Company completed preliminary drill programs to test targets on the Eddy and Zinger Properties. Assay results from these first holes are pending and will be announced when they are received. The Company next expects to drill test gold and base metal targets on the Vine Property early next year.
The Eddy Property covers a 20 km shear zone with gold mineralization in historical and more recent rock grab samples ranging up to 56 g/t taken along and in vicinity of the shear. Airborne geophysics has also identified 4 large Electro-Magnetic (EM) and/or magnetic anomalies at depth that management believes could be associated with gold and/or base metal mineralization. Preliminary holes drilled to test the geology and source of the geophysical anomalies were inconclusive. Additional geophysics is being undertaken to help further define the geophysical anomalies for possible further drill testing in 2013.
The Zinger Property has an 8km long and 1.5 km wide trend of historical and more recent rock grab samples containing anomalous results up to 39 g/t gold. Within this trend, airborne geophysics has identified a 4 km long magnetic trend and resistive zones that may correlate with alteration associated with gold mineralization. Recent mapping has also identified a fold structure in the sediments that appears to correlate with the trend in gold mineralization. The completed preliminary drilling will be used to help confirm the fold structure’s orientation and assess alteration and gold mineralization. Results of this work will be used to define targets for testing in 2013.
Management believes that the Vine property has potential for 2 types of deposits, sub-vertically dipping vein style gold-silver-lead-zinc-copper mineralization and shallow dipping Sullivan style massive sulphide lead- zinc-silver mineralization. Historical drilling has identified mineralization within the Vine vein structure for over 1 kilometre along strike and to a depth of about 500 metres in one location. The potential for additional mineralization at depth and along strike is being evaluated. In addition, an airborne VTEM geophysical survey has identified a large EM anomaly on the Vine Property. Compilation of historical drilling and surface mapping suggests that the anomaly may occur at the same geological time horizon that hosts the Sullivan lead-zinc-silver deposit. The anomaly may also be associated with a deeper sulphide horizon that was intersected by Kokanee Exploration Ltd. in a 1990 drill hole located about 1.5km north-east of the anomaly. The 4m sulphide intersection averaged 0.11g/t gold, 42 g/t silver, 4.3% lead, 2.1% zinc, and 0.4% copper. Multiple target areas are being prioritized for drilling planned in early 2013.
Company President and CEO, John Keating, comments, “Exploration during 2012 has greatly advanced our understanding of the geological controls that influence the distribution and concentration of gold mineralization. Results from work on the Dewdney Trail, Zinger and other properties are still being received and will be compiled to help define additional targets for testing in 2013. With our recent financing of $1.4 million combined with the financing announced today, PJX is well positioned to continue to explore in pursuit of making a discovery.”
Historical analyses and data have been compiled from reports by previous companies that worked on the properties and documents published by, or assessment reports filed with, the Government of British Columbia. The technical accuracy of the historical data has not been verified by the Company.
Company rock samples were securely stored on site before being shipped to Acme Analytical Laboratories (Vancouver) Ltd. (“Acmelabs”) for crushing and ICP analysis. AcmeLabs is an independent certified laboratory and preparation facility which maintains an International Standards Organization (ISO) 9001 Model for Quality Assurance and ISO/IEC 17025 General Requirements for the Competence of Testing and Calibration Laboratories.
The foregoing geological disclosure has been reviewed by John Keating, P.Geo. (a qualified person for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects). Mr. Keating is the President, CEO and a Director of PJX.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About PJX Resources Inc.
PJX is a mineral exploration company focused on building shareholder value and community opportunity through the exploration and development of mineral resources with a focus on gold. PJX’s primary properties are located in the historical mining area of Cranbrook and Kimberley, British Columbia.
Please refer to our web site http://www.pjxresources.com for additional information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chief Financial Officer
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.
This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. Forward-looking statements include, but are not limited to, statements with respect to exploration results, the success of exploration activities, mine development prospects, completion of economic assessments, and future gold production. In some cases, you can identify forward-looking statements by terminology such as “may”, “appears to”, “should”, “expects”, “plans”, “anticipates”, believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements.
Although PJX has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.