Nevada Zinc Secures Definitive Agreement for Sale and Option of Mineral Claims in Nevada
- 26-Jul-2024 5:06 PM
- Journalist: Peter Schmidt
Nevada Zinc Corporation (“Nevada Zinc” or the “Company”) (TSX-V: NZN) announces that it has entered into a definitive agreement dated July 24, 2024 (the “Agreement”) with an arm’s length third party (the “Purchaser”) to sell a portion of its interest in mineral claims located in Eureka County, Nevada (the “Property”).
The Property consists of 203 mineral claims located in Eureka County, Nevada, and includes:
1. 1 patented claim and 26 unpatented lode claims, all of which are fully owned by the Company’s wholly owned subsidiary, Lone Mountain Zinc Ltd. (referred to as the “Owned Claims”); and
2. 176 unpatented lode claims (the “Leased Claims”) which the Company holds under a long-term lease agreement (the “Lease”).
Under the terms of the Agreement, the Purchaser has agreed to buy, and the Company has agreed to sell, a 25% beneficial interest in the Company’s rights and interests under the Lease related to the Leased Claims. Additionally, the Company will record a deed of trust against the Owned Claims in favor of the Purchaser. The transaction involves a cash consideration of US$116,908, which was paid to the Lease owner to maintain the Lease in good standing.
Additionally, under the terms of the Agreement, the Company will grant the Purchaser an exclusive option (the “Option”) to acquire: (i) 100% of the Company’s right, title, and interest in the Owned Claims; and (ii) 100% of the Company’s rights and interests under the Lease concerning the Leased Claims. The Purchaser can exercise this Option by:
1. Issuing to the Company a number of common shares in the Purchaser (the “Consideration Shares”) with an aggregate value of $1,000,000, based on the 10-day volume-weighted average trading price of the Purchaser's common shares; and
2. Paying the Company a cash fee of $100,000.
The grant of the Option qualifies as a “Reviewable Disposition” under Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets of the TSX Venture Exchange (the “TSXV”). Consequently, the Option must be approved by the TSXV and is also anticipated to require approval from the Company’s shareholders. If shareholder approval is necessary, the Company plans to obtain it at a special meeting of its shareholders (the “Meeting”). Additional details about the transaction will be included in an information circular that the Company will prepare, file, and distribute to Nevada Zinc shareholders in relation to the Meeting. No finder’s fees will be paid in relation to this transaction.