Panex Resources Inc. announced that it has entered into a Farm-In agreement with Afrimines SARL, to acquire up to 90% direct interest in the highly prospective Matala Gold Project in the South Kivu Province, DRC. The Matala Gold Project is located at the southwestern end of the prolific Twangiza-Namoya Gold corridor where Banro Corp. has defined to date, more than 17 million Ounces (Moz) of gold resources from four deposits adjacent to the project area. The main drill target, Kanana, is located within the Matala project area, and has the same geological setting as Banro's 8.6Moz Twangiza and 5.6Moz Lugushwa deposits. A 1,500m diamond drilling program is expected to commence mid-to-end August. The Matala Gold Project comprises 14 exploration permits for 1,967sqkm on the north-western edge of the Kibaran Belt, an intracontinental mobile belt located between the Congo and Tanzania cratons. The Kibaran belt and adjacent Tanzanian Craton host more than 70Moz of gold resources, currently being mined by Banro, AngloGold Ashanti, Barrick and Barra, in the well renowned, world class gold province. Panex's initial focus will be to drill the high priority Kanana Prospect where channel sampling has identified high grade gold mineralisation along the fold axis of a major antiform, similar to that which hosts both the Twangiza and Lugushwa deposits. Panex has contracted International Drilling Services SARL from Goma, DRC, to drill 5 diamond drill holes for 1,500 metre (m) aimed at testing the mineralised fold axis over 1,100m of strike. The drill collars are positioned approximately 400m apart over the high grade portion of the gold-in-soil and channel sampling anomaly. Holes will be drilled at -50 degrees towards the southwest across the fold axis of the northwest trending Kanana anticline. Drilling is expected to intercept multiple zones of high-grade gold mineralised quartz veins, several metres wide, surrounded by broader, low to moderate grade disseminated sulphide quartz stock work zones tens of metres wide, across the fold axis. Panex may earn an initial 51% interest in the Tenements by incurring: expenditure totaling USD 500,000 on the Tenements during the period of 6 months after the Commencement Date (Phase 1 Period); and expenditure totaling a further USD 500,000 on the Tenements (Phase 2 Expenditure) during the period of 12 months after the Phase 1 Period (Phase 2 Period). Panex may earn a further 19% interest to take its then aggregate interest to 70% by incurring a further USD 3,000,000 in expenditure on the Tenements (Phase 3 Expenditure) during the period ending on the date that is 2 years after Panex has earned the Initial Interest (Phase 3 Period). Panex can earn a further 10% interest (Phase 4 Interest) to take its then aggregate direct interest to 80% by incurring a further USD 10,000,000 in expenditure on the Tenements (Phase 4 Expenditure) during the period ending on the date that is 3 years after Panex has earned the Phase 3 Interest (Phase 4 Period). Upon completion of a Definitive Feasiblity Study, Panex shall also have the option to acquire up to a further 10% interest to take its then aggregate interest to 90% by payment to Afrimines of an amount determined through an independent valuation of the assets. Panex is to fund all exploration to completion of a DFS. Historic expenditure of USD 12 million by Afrimines will be treated as a loan which will be recoverable from the proceeds of production within the first three years of commencement of production. At any time after the Phase 1 Period, Panex may terminate the agreement, and Panex shall have no further obligation to make any expenditure in respect of the Tenements. A vendor consideration of 125 million shares in Panex and USD 20,000 cash payment is due on closing of the transaction.