October 8th, 2014 

 

Vancouver, British Columbia − Cap-Ex Iron Ore Ltd. (TSX-V: CEV) (“Cap-Ex” or the “Company”) has signed an agreement (the “Agreement”) with Tata Steel Minerals Canada Ltd (“TSMC”) in respect of roadway access and DSO exploration over the Company's wholly-owned Block 103 property in western Labrador. Under the terms of the Agreement, the Company has agreed to assist TSMC in obtaining surface rights for a roadway through Block 103 to connect adjoining properties of TSMC. TSMC shall be solely responsible for all work, costs and expenses required to build the roadway and for continued use of the roadway, including maintenance.  

 

In return TSMC has agreed to pay the Company $250k cash and conduct an initial $550k DSO exploration program on Block 103. The exploration program, to be determined by TSMC, will include gravity testing and pit testing of geophysical anomalies previously identified by Cap-Ex and TSMC geologists. The program is to be completed by September 30, 2015 during which period Cap-Ex has granted TSMC exclusivity in regards to exploring DSO prospects on Block 103. Target Map

 

At any time prior to September 30, 2015, TSMC has the right to advise Cap-Ex that it wishes to enter into a joint venture agreement regarding the DSO potential of Block 103 in which event both parties agree to negotiate in good faith for a period of 90 days.  If at any time TSMC decides it does not to continue with the exploration program, or both parties cannot agree on a joint venture agreement, TSMC will pay an additional $200k cash to Cap-Ex in full satisfaction of its exploration commitment under the Agreement.  

 

Graham Harris, CEO states “to date the Company's focus has been on developing the PEA of the 7.8 Billion tonne Magnetite deposit on Block 103. Over the next 12 months we look forward to working closely with our neighbour, TSMC, to explore the DSO potential of Block 103.” (see the Company's news release dated June 27, 2013 for details of the PEA).

 

The Company also announces the granting, subject to regulatory acceptance, of 1,280,000 incentive stock options to certain officers, directors, consultants and employees of the Company. The options have a term of five years and are exercisable at a price of $0.05 cents per share.

 

The Company is also seeking to undertake a private placement of up to 15 million units (the "Units") at a price of $0.05 per Unit for gross proceeds of up to $750,000, each Unit consisting of one share and one full warrant to purchase an additional share at a price of $0.05 for a period of 2 years. The net proceeds of the private placement will be used for general working capital and project development.  It is expected that certain insiders of the Company will participate in the financing and, subject to applicable securities legislation, other qualified investors are invited to subscribe for Units. For further details regarding the financing, please contact the Company directly by emailing This email address is being protected from spambots. You need JavaScript enabled to view it. or calling (604) 669-2279.

 

 

Cap-Ex Iron Ore Ltd. is a Canadian listed company, focused on the development of its wholly owned Block 103 Iron Ore Project in the Labrador Trough, near the mining town of Schefferville, Québec. The Block 103 property is strategically located close to an existing railway that can provide a direct link to a shipping port and is adjacent to Tata Steel-New Millennium Iron Corp.  LabMag and KeMag deposits and the Tata-New Millennium oxide deposits to the east.

 

For additional information please visit the Company’s website at www.cap-ex.ca.  

 

On behalf of the Board

“Graham Harris”

CEO and Director

 

604-669-2279

www.cap-ex.ca