VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/22/13 -- Cap-Ex Iron Ore Ltd. (TSX VENTURE: CEV)(OTCQX: CPXVF)(FRANKFURT: XOV) ("Cap-Ex" or the "Company") is pleased to announce that with the release of the maiden resource and the metallurgical results on its Block 103 Iron Ore Project in the Labrador Trough, the Company is now actively seeking a strategic partner.
Key to the Company's efforts in searching for a strategic partner is Mr. Mark Morabito, Special Advisor to the Chief Executive Officer of Cap-Ex. Mr. Morabito was appointed to this role in June 2012 to assist the Company in advancing the Block 103 Project. Mr. Morabito, as Executive Chairman of Alderon Iron Ore Corp., was instrumental in Alderon's signing of an Off-take and Partnership Agreement with Hebei Iron and Steel Group ("Hebei") last year, culminating in last week's announcement that Hebei had completed the remaining cash contribution of its initial $182.2 million investment.
Francois Laurin, President and CEO of Cap-Ex, stated, "We have made rapid progress, from completing a 22,300 metre drill program in 2012 to last month's announcement of a 7.2 billion tonne inferred iron resource and positive metallurgical results. With Mark's success at Alderon, and the recent closing of their Hebei transaction, now is the time to leverage his expertise and experience to assist Cap-Ex in taking the next step forward in securing a strategic partner."
The Block 103 Project hosts an initial NI 43-101 inferred resource estimate of 7.2 billion tonnes at 29.2% total iron. Preliminary metallurgical results indicate marketable pellet feed product.
Cap-Ex also announces that it is undertaking a non-brokered private placement financing of up to 33,333,333 units (the "Units") at a price of $0.15 per Unit for gross proceeds of up to $5.0 million (the "Offering"). Each Unit will be comprised of one common share and one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one common share of the Company at an exercise price of $0.20 for a period of 24 months from the date of issue. Insiders will subscribe up to a maximum amount of $2.5 million.
At any time after four months and one day from the date of the closing of the Offering, if the volume weighted average trading price of the common shares of Cap-Ex on the TSX Venture Exchange is greater than $0.50 per share for 20 consecutive trading days, Cap-Ex may give written notice to warrant holders that the Warrants will expire 30 calendar days after the date of such notice.
The Company intends to use the net proceeds of the Offering to continue to advance its Block 103 Project with a 2013 drilling program and to seek a strategic partner.
The offering remains subject to certain conditions including, but not limited to, the approval of the TSX Venture Exchange.
The securities being offered hereby have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or province in which such offer, solicitation or sale would be unlawful.
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