Zinc One Extends Agreement on the Esquilache Project, Southern Peru with Nubian Resources
November 28, 2017 (Source) — Zinc One Resources Inc. (TSXV: Z) (OTC Pink: ZZOF) (FSE: RH33) (Zinc One or the “Company”) is pleased to report that Nubian Resources Ltd. (TSXV: NBR) has completed its due diligence to acquire the Esquilache silver-lead-zinc project from the Company. The Esquilache project, comprising the historical Esquilache underground lead-zinc mine and adjacent Virgen de Chapi prospect, is located in the Puno Department of southern Peru. Under the terms of the letter of intent (“LOI”) announced on September 19th, the entry into the definitive purchase agreement was to take place on November 24th, however, given the additional time required to complete the due diligence process, Nubian and Zinc One have agreed to extend the entry into the definitive purchase agreement to December 22, 2017.
Nubian has advanced $25,000 to Zinc One thus reducing the cash amount owing on closing from $125,000 to $100,000, which amount will be in addition to the $475,000 in common shares of the Company calculated on the volume weighted average price (“VWAP”) for the 60 calendar days preceding the LOI date as well as the four annual advanced Net Smelter Royalty (NSR) payments of $162,500, as outlined in the LOI. The Project is subject to a 2% NSR, of which Nubian will have the right to purchase 1% for $500,000 at any time until the third anniversary of the first sale of gold, silver or concentrate.
“Zinc One is very pleased to complete this agreement that secures some financing for the Company allowing us to focus on our Bongará and Charlotte Bongará Peru projects which are of higher priority for us,” commented Jim Walchuck, President and CEO of Zinc One.
About Zinc One Resources Inc.
Zinc One is focused on the acquisition, exploration and development of prospective and advanced zinc projects in mining-friendly jurisdictions. Zinc One’s key assets are the Bongará Mine and Charlotte-Bongará Zinc-Oxide Projects in north-central Peru. The former was in production from 2007 to 2008, but shut down due to the global financial crisis and concurrent decrease in the zinc price. Past production included 20% zinc grades and recoveries over 90% from surface and near-surface nonsulfide zinc mineralization. High-grade, nonsulfide zinc mineralization is known to outcrop between the mined area and the Charlotte-Bongará Project, which is nearly six kilometres to the NNW and where past drilling intercepted various near-surface zones with high-grade zinc. The Company is managed by a proven team of exploration geologists and engineers who have previously constructed and operated successful mining operations.
The technical content of this news release has been reviewed and approved by Bill Williams, COO and Director of Zinc One, a qualified person as defined by National Instrument 43-101
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Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Zinc One cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to Zinc One’s limited operating history, its proposed exploration and development activities on the Bongará Zinc Oxide Project and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Zinc One does not undertake to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
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