Zinc One Signs LOI to Sell 100% of the Esquilache Silver Project in Southern Peru
September 18, 2017 (Source) — Zinc One Resources Inc. (TSXV: Z) (OTC Pink: ZZZOF) (FSE: RH33) (“Zinc One or the Company”)announces that Zinc One has entered into a binding letter of intent (the “LOI”) with Nubian Resources Ltd. (“Nubian”) whereby Zinc One has agreed to sell a 100% interest in one of its non-core assets, the Esquilache Silver Project, located in Southern Peru, to Nubian.
Under the terms of the LOI, Nubian paid Zinc One a $25,000 deposit and has agreed to pay $600,000 on closing (the “Closing Payment”). The Closing Payment will consist of: (i) a minimum of $125,000 in cash and (ii) up to $475,000 in common shares of Nubian calculated on the volume weighted average price (“VWAP”) for the 60 calendar days preceding the LOI date.
Further, Zinc One will receive four non-refundable annual advanced Net Smelter Royalty (NSR) payments of $162,500. Zinc One will also retain 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. The parties have agreed to enter into the definitive agreement by November 23, 2017.
Jim Walchuck, Chief Executive Officer of Zinc One stated “The proposed sale of the Esquilache Silver Project reiterates management’s plan to focus on the exploration and development of our flagship Bongará Mine and Charlotte-Bongará Zinc-Oxide Projects in north-central Peru and being a ‘pure zinc’ exploration and development company.”
Closing of the purchase is subject to a number of conditions including acceptance of the TSX Venture Exchange.
About Zinc One Resources Inc.
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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 Bongará Zinc-Oxide Mine Project 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 zinc nonsulfide mineralization. High-grade nonsulfide zinc mineralization is known to outcrop between the mined area and the Charlotte-Bongará Zinc-Oxide 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
ON BEHALF OF THE BOARD OF DIRECTORS OF
ZINC ONE RESOURCES INC.
CEO and President
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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