ScoZinc and MRI Announce Offtake and Financing Agreement
ScoZinc and MRI Announce Offtake and Financing Agreement
COOKS BROOK, Nova Scotia, April 03, 2018 -- ScoZinc Mining Ltd. (TSX-V:SZM) (“ ScoZinc” or the “Company”) is pleased
to announce the execution of a strategic term sheet with MRI Trading AG (“MRI”). The terms include:
1. Life of mine offtake agreement for lead and zinc concentrates,
2. CAD$14M debt at competitive terms, and
3. CAD$1M as an equity “lead order” for a planned financing.
The debt and equity components provide for over half of the required funds to recommence mining and milling operation. The
offtake agreement provides competitive terms for 333,000 wmt of zinc concentrate and 133,000 wmt of lead concentrate from
the Company’s ScoZinc mine in Nova Scotia. Due diligence has commenced and is expected to be completed in early May.
Considerable interest was shown in ScoZinc’s high-quality concentrate with numerous competing parties offering terms for the
project’s zinc and lead concentrates. MRI was selected following collaborative negotiations due to their familiarity and history
with the project, their willingness to include an equity investment in the Company, favorable debt terms and ability to quickly
complete the transaction in support of restarting operations as soon as possible.
ScoZinc CEO Joseph Ringwald stated “We are very pleased with the comprehensive terms provided by MRI and our ability to
finance over half of the required capital to restart operations. With this financing in place, we will commence a focused
marketing campaign to secure the remaining funds to put the mine into production in 2018.”
The closing of the MRI transaction is conditional upon successful due diligence by MRI and ScoZinc securing the remainder of
restart capex, estimated to be a total of CAD$15M.
About MRI Trading AG
MRI is a leader in trading, metals and minerals, petroleum products, bulk and freight. It specializes in non-ferrous ores,
concentrates, refined and precious metals and their related by-products for a global smelting and processing customer base.
About ScoZinc Mining Ltd.
ScoZinc Mining Ltd. is an established Canadian-based zinc and lead company that owns 100% of the ScoZinc Mine (ScoZinc
Limited) and related facilities near Halifax, Nova Scotia. The project is currently on care and maintenance. The Company
intends to restart operations as soon as possible. The Company has a strong working capital position and no debt. The
Company has 4,216,044 common shares outstanding which are traded on the TSX Venture Exchange under the symbol
“SZM”.
For more information, please contact:
Mr. Joseph Ringwald – President and CEO Telephone: +1 (604) 347-7661 [email protected]
CAUTIONARY STATEMENTS
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this news release.
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information
involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking
information in this news release includes statements regarding, among other things, ScoZinc’s objectives, goals and future
plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not
limited to, regulatory approval processes, changes in general economic conditions and conditions in the financial markets, and
changes in demand and prices for minerals. Although ScoZinc believes that the assumptions used in preparing the forward-
looking information in this news release are reasonable, including that the proceeds from the Offering will be expended as
currently contemplated, undue reliance should not be placed on such information, which only applies as of the date of this
news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. ScoZinc
disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information,
future events or otherwise, other than as required by applicable securities laws.