Margaux Resources Ltd. terminated its agreement to acquire Apex Resources Inc.'s Jersey-Emerald property in British Columbia, according to separate Oct. 4 releases from the companies.
The deal was signed in November 2013 and was amended several times. It required Margaux to make monthly payments of C$50,000, which will increase to C$100,000 on Jan. 1, 2019, until a total of about C$4.0 million is reached. The company has spent about C$3.0 million on development activities so far.
Margaux's board, however, determined that such payments were unjustifiable in light of current market conditions and metal prices, and were no longer in the best interest of its shareholders. It will continue gold and zinc exploration at targets identified on properties outside of the optioned project.
As a result of the termination, all of the data relating to the property will be transferred to Apex.
Apex will also secure certain other properties acquired by Margaux since 2013 while exploring Jersey-Emerald due to an area of interest clause in the agreement.
Apex is currently exploring its Mount Anderson gold project in the Yukon Territory but remains committed to advancing the exploration and development of Jersey-Emerald.