InZinc Closes Option Agreement and Receives Initial Payment of US$500,000
InZinc Closes Option Agreement and Receives
Initial Payment of US$500,000
Vancouver, British Columbia--(Newsfile Corp. - June 2, 2021) -
InZinc Mining Ltd. (TSXV: IZN)
("InZinc" or the "Company") is pleased to announce the closing of the option agreement (the "Option
Agreement") with American West Metals Limited ("American West"), a private Australian company, on
June 1, 2021 (the "Effective Date").
The Option Agreement was approved by the Company's
shareholders at the annual meeting of shareholders held on May 27, 2021 and subsequently approved
by the TSX Venture Exchange.
American West, having made an initial cash payment of US$500,000 to
InZinc, now has an option to earn a 100% interest in InZinc's West Desert project ("West Desert")
located in Utah, USA.
"By leveraging, through prospective shareholdings in a new and aggressive ASX listed North American
copper-zinc metal explorer and receiving a significant stream of cash payments, InZinc will benefit from
the ability to self-fund the next exploration activities at our Indy project in British Columbia and generate
new growth opportunities for InZinc shareholders," commented Wayne Hubert, CEO of InZinc.
"We are
looking forward to renewed activities at Indy as well as the Initial Public Offering of American West on the
ASX, a successful prefeasibility campaign at West Desert, and programs at American West's Storm
Copper and Copper Warrior Projects over the next 24 months."
Highlights of the Option Agreement include:
1
.
An initial cash payment of
US$500,000
to InZinc (received)
2
.
Payments to InZinc over 24 months comprising:
i
.
CDN$1,000,000
within 30 days of American West listing its shares on the Australian
Securities Exchange ("ASX") through an initial public offering or other going public
transaction ("IPO")
or
12 months after the Effective Date, whichever is earlier;
ii
.
US$1,500,000
upon announcement by American West of a completed Prefeasibility Study
for West Desert
or
24 months after the Effective Date, whichever is earlier; and
iii
.
CDN$2,500,000
by way of shares of American West. If American West has not completed
the IPO on the ASX within 12 months of the Effective Date, InZinc may elect to receive
CDN$1,250,000
in cash from American West in lieu of shares. If American West has not
completed the IPO on the ASX within 24 months of the Effective Date, InZinc may elect to
receive
CDN$2,500,000
in cash in lieu of shares.
3
.
Exercise of Option, Operator, Indium Revenue Share and Termination
Upon exercise of the Option, InZinc will receive 50% of the revenue from the sale of indium mined from
West Desert determined on a Net Smelter Return basis ("NSR"). American West will have the right to
reduce the NSR to 25% by paying InZinc US$5,000,000 in cash at any time prior to the first sale of
indium from the project.
During the Option period, American West will be the operator of West Desert. If payments referred to
above are not paid when due and American West does not rectify the failure within 45 days, InZinc would
have the right to terminate the Option Agreement and American West shall surrender West Desert
promptly to InZinc.
About American West
American West is a new Australian company with a strategy to achieve growth in shareholder wealth
through the discovery and development of major mineral deposits. The Company is aiming to list its
securities on the Australian Securities Exchange (ASX) in H2 2021. American West has acquired an
interest in three base metals projects in North America which it believes have potential to generate
significant economic resource inventories and robust mining proposals:
1
.
The West Desert Project in Utah, USA;
2
.
The Storm Copper and Seal Zinc Projects in Nunavut, Canada; and
3
.
The Copper Warrior Project in Utah, USA.
For further information on American West, see
www.americanwestmetals.com
About InZinc
InZinc is focused on growth through exploration and advancement of its interest in multiple North
American base metals projects. The road accessible Indy project (100% option), located in central
British Columbia, comprises discoveries of near surface mineralization and large untested exploration
targets along a 25km long trend with potential for the discovery of a new regional scale zinc belt. The
West Desert Option (100% option to American West Metals) provides significant cash payments and
continuing leverage through prospective ownership of shares of American West Metals as it funds the
advancement of the West Desert project to prefeasibility (planned in Q3 2023) and the Storm Copper
and Copper Warrior projects in North America.
In addition, upon exercise of the West Desert option,
InZinc will receive 50% of the revenue from the sale of indium mined from West Desert.
InZinc Mining Ltd.
"Wayne Hubert"
CEO and Director
Phone: 604.687.7211
Website:
www.inzincmining.com
For further information contact:
Joyce Musial
Vice President, Corporate Affairs
Phone: 604.317.2728
Email:
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively,
"forward-looking statements") within the meaning of applicable securities legislation. All statements,
other than statements of historical fact, included herein are forward-looking statements. Although the
Company believes that such statements are reasonable, it can give no assurance that such expectations
will prove to be correct. Forward-looking statements are typically identified by words such as: "believe",
"expect", "anticipate", "intend", "estimate", "plan", "design", "postulate" and similar expressions, or are
those, which, by their nature, refer to future events. The Company cautions investors that any forward-
looking statements by the Company are not guarantees of future results, performance, or actions and
that actual results and actions may differ materially from those in forward-looking statements as a result
of various factors, including, but not limited to, those risks and uncertainties disclosed in the Company's
Management Discussion and Analysis for the year ended December 31, 2020 and for the three months
ended March 31, 2021 filed with certain securities commissions in Canada and other information
released by the Company and filed with the appropriate regulatory agencies. All of the Company's
Canadian public disclosure filings may be accessed via
www.sedar.com
.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/86121