LAS VEGAS, Sept. 26, 2023 (GLOBE NEWSWIRE) -- via IBN - GEMXX Corporation ( OTC: GEMZ ) ("GEMXX" or the "Company"), announces today it has signed a binding Letter of Intent (“Proposed Transaction”) to acquire an initial 50% stake in The Yukon Gold Project (“the Property”), pending conclusion of due diligence and verification of the considerable exploration work already completed on the property and the assessments quantifying the proven and potential gold resources.
To date, exploration work on the property includes geological mapping and prospecting, ground magnetometer and induced polarization surveys, soil sampling, trenching and diamond drilling. In 2010, Aurora Geosciences Ltd. compiled all data and assay results to complete a NI 43-101 Resource Report, the Canadian equivalent to a SK-1300.
The Resource Report confirms that the Property holds 2,210,660 ounces of Proven gold resources. In addition, the Probable and Possible values indicated in the reports suggest the Yukon Gold Project could yield a total of 4 million ounces of gold.
In addition to the lucrative gold assets, GEMXX is reviewing the data to determine if other minerals and/or rare earth elements, such as those used in battery manufacturing, are also commercially viable on the property.
Letter of Intent
A $50,000 nonrefundable cash deposit will be paid from GEMXX to The Yukon Gold Project for access to geological and engineer reports, other intellectual property, and company information to confirm GEMXX’s interest in The Yukon Gold Project.
GEMXX will have 90 days to complete its due diligence and prepare a Definitive Purchase Agreement (the “Agreement”).
Pursuant to the Agreement, in consideration for acquiring 50% of The Yukon Gold Project, GEMXX expects to pay to the Vendor, on closing of the Proposed Transaction, a combination of cash and common shares of GEMXX.
The Yukon Gold Project Property
The Property consists of 145 full Yukon Quartz Claims and is located south of Whitehorse, Yukon Territory in Canada. The Property has been explored since the time of the Klondike Gold Rush. It is a property of merit that could substantially impact the company’s balance sheet and future revenue.
"In addition to our Snow Creek and Rosella Creek Gold deposits, the acquisition of The Yukon Gold Project will significantly increase the Company’s gold asset portfolio. Our plan to de-risk revenues through production of the world’s most sought-after commodity is happening fast,” said GEMXX CEO Jay Maull.
“By adding up to 4 million ounces of gold to the Company’s assets, GEMXX will increase shareholder value and provide a long-term, stable and profitable investment for years to come,” Maull continued. “We will not only enjoy a significant reduction in the cost of goods for our entire gold jewelry line, but this acquisition will bring the Company closer to our goal of becoming vertically integrated.”
GEMXX has negotiated a contract with Aurora Geoscience, the engineering firm that wrote the NI 43-101 Resource Report in 2010. Aurora will confirm the property is as it was and still holds the value previously reported, adjusted for the current gold prices. Any additional drilling programs or assay results added will be included by Aurora in the updated S-K 1300 compliant Resource Report.
Arm’s Length Transaction
This press release contains information about a potential transaction that includes a related party. Richard Clowater, president of GEMXX Corp., is also a control person and owns 50% of issued shares in the Yukon Gold Project.
All parties have agreed that this transaction will be negotiated at arm's length in order to reduce/remove conflicts of interest with Clowater's position at GEMXX Corp. and his personal ownership and control of the Yukon Gold Project.
ABOUT GEMXX CORPORATION
GEMXX Corporation (OTC: GEMZ; $GEMZ) is a publicly traded, mine-to-market gold, gemstone and jewelry producer with global reach that owns mining resources, production facilities and operating assets. GEMXX controls each stage of its production including gold mining, gemstone production, jewelry manufacturing and global distribution.
GEMXX is a leading producer of top-quality finished Ammolite and Ammolite jewelry. The Company’s world-class gemstone cutters and jewelry designers are continuously leading the Ammolite industry in new and exciting directions. Our management team is made up of the industry's leading experts with a combined total of 160 years of Ammolite gemstone and jewelry business experience.
For more information, please visit: GEMXX Corporation
SAFE HARBOR STATEMENT
This press release contains forward-looking statements that can be identified by terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results implied by such statements. These factors include, but are not limited to, our ability to continue to enhance our products and systems to address industry changes, our ability to expand our customer base and retain existing customers, our ability to effectively compete in our market segment, the lack of public information on our company, our ability to raise sufficient capital to fund our business, operations, our ability to continue as a going concern, and a limited public market for our common stock, among other risks. Many factors are difficult to predict accurately and are generally beyond the Company's control. Forward-looking statements speak only as to the date they are made, and we do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Signed.
/S/ Jay Maull, CEO
GEMXX Corporation
For more information, please contact:
ir@gemxx.com
www.gemxx.com
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