WEST VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/21/13 -- Carmax Mining Corp. ("Carmax") (TSX VENTURE: CXM) is pleased to announce that it has signed a Letter of Intent to acquire ownership of a British Columbia Corporation and its wholly owned Dominican Republic subsidiary specifically for the purpose of acquiring the underlying assets of the subsidiary which consists of a 100% interest in and to two mineral exploration concessions located in the Dominican Republic. The aggregate consideration payable for the assets acquired will the sum of $500,000, 5,000,000 shares and a commitment to spend up to $1,700,000 in exploration and development of the claims over a period of three years.
The purchase price for the assets is payable as follows:
a. a non-refundable deposit of $15,000 which was paid on signing of Letter of Intent;b. $60,000 and 450,000 Carmax Shares within five (5) business days of the dated the terms of the Agreement are accepted for filing with the TSX Venture Exchange;c. $75,000 and 1,050,000 Carmax Shares within five (5) business days of the date the applications for mineral exploration concessions are approved by the Ministry Industry and Commerce of the Dominican Republic (the "Date of Grant");d. $150,000 and 1,500,000 Carmax Shares on or before the first anniversary of the Date of Grant; ande. $200,000 and 2,000,000 Carmax Shares on or before the second anniversary of the Date of Grant.
The exploration commitment provided for under the terms of the Letter of Intent is to be satisfied by spending the following sums:
a. $200,000 prior to the first anniversary of the Date of Grant:b. an additional $500,000 prior to the second anniversary of the Date of Grant; andc. an additional $1,000,000 prior to the third anniversary of the Date of Grant.
The applications made to the Ministry Industry and Commerce of the Dominican Republic is for the grant of concessions to properties known as La Angostura which comprises of 10,625 Ha and El Rio which comprises of 14,750 Ha, both located in the Tireo Belt of central Dominican Republic.
The two concessions are located approximately 40 km west of the Pueblo Viejo mine (owned by Barrick Gold 60% and Goldcorp Inc 40%) operated by Barrick, which contains a proven and probable reserve of 25.3 million ounces of gold, and achieved commercial production on January 15, 2013 (Barrick news release January 15, 2013).
The acquisition is subject to TSX Venture Exchange approval.
Jevin Werbes, President and CEO of Carmax commented, "by acquiring the rights to two large land packages in strategically located areas of the Dominican Republic Carmax will now be able to diversify its exploration activities and remain active in exploration programs throughout the year. Carmax's mineral exploration properties in British Columbia and Ontario have prior to this acquisition historically been subject to limited exploration season".
The concessions are also adjacent to GoldQuest Mining Corp's Las Animas project, and just north of Precipitate Gold Corp's Higos Blancos.