As year-end approaches and we enter a traditional time for reflection I want to take this opportunity to let all of you know how much we at Merrex Gold appreciate your continued support.
This year has been one of the most turbulent in recent memory. As we remember better times enjoyed only a few short months ago, the dramatic downturn in stock markets seems unbelievable and it is inevitable that many junior exploration companies will not survive. However, as Merrex Gold shareholders you should be proud of the work of your management and the accomplishments of your company during this difficult time. Our investment in the Siribaya Gold Project has delivered the sought-after results, attracting the attention of a number of major gold companies which ultimately resulted in an option agreement with IAMGOLD Corporation that closed on December 19, 2008.
The IAMGOLD-Siribaya deal includes a $0.35/share private placement investment totaling $1.5 million to the Merrex Gold treasury. Also, IAMGOLD will invest $10.5 million into the Siribaya Gold project over the next 4 years to earn a 50% interest in Siribaya. Merrex Gold will be the operator of the project for the next two years earning project management fees which will defray our overheads.
The IAMGOLD-Siribaya option with its concurrent private placement will ensure that our company will not only endure but rather will prosper during this economic downturn and, more importantly, it ensures that the Siribaya gold Project will be explored to its full potential. A deal of this kind necessarily involves a number of people using their quite considerable skills with a great deal of perseverance, all of whom deserve our thanks. That said, I want to take this opportunity to recognize the significant contributions of a few: John Cumming, our Executive VP and General Counsel, who was the deal architect and principal negotiator; Jean-Marc Gagnon, our Mali project director, who coordinated all of our Mali documentation and Mohamud Sylla, our partner at Touba Mining in Mali, for his understanding and co-operation with the many documentation changes that we needed.
Looking forward, we will explore our properties in Turkey with our partner, Roscan and segregate the Jubilee project into its own public company where as a stand-alone asset it can develop a greater value for you, the shareholders.
With the future of the Siribaya Gold project secure, our attention will refocus on doing what our team does best: identifying exploration opportunities and developing new projects to increase shareholder wealth. In spite of the stock market negativity, we should look forward optimistically � this downturn won't last forever...and when its over Merrex will have survived, thanks in part to our actions over the past 12 months but also to the support from you, the loyal shareholders who stuck with us through the tough times. You will be rewarded for your fortitude.
So, with 2008 behind us and 2009 ahead of us, on behalf of all of us at Merrex Gold, I want to thank you again for your continued support. We wish each and every one of you a happy and safe holiday season and peace, health and prosperity in the New Year.
Sincerely,
Greg Isenor
President and CEO
Merrex Gold Inc.
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Merrex Gold
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EXPLORATION STAGE |
CODE : MXI.V |
ISIN : CA59012H1047 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Merrex Gold is a gold exploration company based in Canada. Merrex Gold holds various exploration projects in Mali. Its main exploration properties are RED LAKE PROPERTIES and JUBILEE in Canada and SIRIBAYA and KAKADIAN in Mali. Merrex Gold is listed in Canada. Its market capitalisation is CA$ 44.8 millions as of today (US$ 33.3 millions, € 31.4 millions). Its stock quote reached its highest recent level on December 29, 2006 at CA$ 1.30, and its lowest recent point on December 13, 2013 at CA$ 0.02. Merrex Gold has 199 230 000 shares outstanding. |