Vancouver, British Columbia–(Newsfile Corp. – February 11, 2021) – Ximen Mining (TSXV: XIM) (OTCQB: XXMMF) (FSE: 1XMA) has signed an indicative term sheet to funding the development of its Kenville Gold Mine. The Kenville Gold Mine is situated 8 km west of the City of Nelson, BC on a group of crown granted mineral claims, together with surface rights that are 100% owned by Ximen. The Kenville Gold Mine commenced production in 1890 and continued in operation into the 1950s, with historical production records showing 65,381 ounces of gold produced from 158,842 tonnes milled, for a recovered grade of 12.8 grams per tonne gold.
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Under the agreement, an arm’s length Swiss-based metals trading firm will provide US$5 million in the form of a secured gold loan for the planned development of a 1,200 meter decline and extraction of a 10,000-tonne bulk sample.
Christopher R. Anderson, President, and CEO stated: “This non-dilutive financing is an important milestone as we continue moving forward on the development of the Kenville Gold Mine towards production. Following months of discussions, we are extremely pleased to have come to terms with a sophisticated firm that understands our industry and is providing us with the final stepping stone to satisfy our cash flow requirements.”
The contemplated Loan will have a maturity date 330 days following the date of the advance and will be repayable on maturity by delivery of a specific number of ounces of gold. The amount will be calculated at a discount to the spot price depending on the then-current London Bullion Market Association closing price. The Loan, to be secured by a first ranking general security agreement over the company’s assets, is forecast to close by April 30, 2021.
The Kenville Gold Mine was previously held by Anglo Swiss Resources, which in 2009 produced a NI 43-101 report that disclosed a Measured and Indicated resource estimate of 16,289 ounces and an Inferred resource estimate of 356,949 ounces. Subsequent to that report, Anglo Swiss drilled several additional diamond drill holes from surface and underground between 2009 and 2012 that intersected multiple gold-quartz veins west and south of the mine.
Since acquiring the project, Ximen has worked toward securing a permit for the development of a new underground decline to access the area where these intercepts were drilled, which Ximen believes is a continuation of the gold deposit that was mined historically. Permitting is expected to be completed within the next 8 weeks.
Ximen has also rehabilitated the portal to the 257 Level of the Kenville Gold mine to provide access to the area of historic mineral resources that were reported in the 2009 technical report. As part of its ongoing technical studies on material from the Kenville Gold Mine, Ximen re-sampled and check assayed 13 samples of core from selected drill hole intercepts obtained in the years 2007 to 2011 inclusive.
This proposed gold loan financing is subject to, among other things, the Lender completing its due diligence, the issuance of the required permits, completion of a CDN$1.5 million equity financing, and the acceptance of required regulatory approvals.
In addition to the Kenville Gold Mine, Ximen Mining also owns 100% interest in 2 other key gold assets in southern BC, the Amelia Gold Mine, and The Brett Epithermal Gold Project. Ximen also owns the Treasure Mountain Silver Project adjacent to the past-producing Huldra Silver Mine. Currently, the Treasure Mountain Silver Project is under an option agreement.
For more information, please visit the company’s website, www.XimenMiningCorp.com, contact Christopher Anderson, President, and CEO, at 604-488-3900. For Investor Relations, contact Sophy Cesar, at 604-488-3900 or by email at [email protected].
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