Vancouver, British Columbia--(Newsfile Corp. - September 27, 2021) - InZinc Mining Ltd. (TSXV: IZN) ("InZinc" or the "Company") is pleased to announce an amending agreement (the "Amendment Agreement") for the acceleration of the payments and earn-in terms of the West Desert option agreement (the "Original Agreement") with American West Metals Limited ("American West"), a private Australian company.
"The accelerated payments, as well as the continuing leverage through prospective shareholdings in a new and aggressive Australian Securities Exchange ("ASX") - listed North American copper-zinc metal explorer, will set the stage for a new era for InZinc. This will provide the flexibility to scale up self-financed exploration programs at the Indy Sedex project in central British Columbia where very large zinc and new silver targets are now defined. It further enables InZinc to consider new value-creating prospects," commented Wayne Hubert, CEO of InZinc.
The revised and accelerated option terms in the Amendment Agreement will result in payments to InZinc of:
- US$125,000 incash upon signing of the Amendment Agreement;
- (a) CDN$1,000,000 in cash; (b) US$1,225,000 in cash (previously US$1,500,000); and (c) 13,385,000 in shares of American West, upon American West completing the listing of its shares on the ASX through an initial public offering or other going public transaction (an "IPO").
Under the terms of the Amending Agreement, American West will also accelerate the reimbursement to the Company approximately USD$96,577, beingthe amount of the reclamation bond currently posted by InZinc with respect to the West Desert Project.
Under the terms of the Original Agreement, InZinc has received an initial non-refundable cash payment of US$500,000.
If, on or before June 1, 2022 (or such later date as the parties may agree to in writing), American West does not receive applications pursuant to the IPO for the issue of not less than 85,000,000 shares of American West at an issue price of AUD$0.20 per share for minimum proceeds of AUD$17,000,000; or ASX conditional approval to admit its securities to the official list of the ASX, the Amendment Agreement will be of no force and effect and the terms of the Original Agreement will be restored, including payment by American West to the Company of CDN$1,000,000 by June 1, 2022 to continue with the terms of the Original Agreement.
Terms of the Original Agreement which have not been amended include: InZinc receiving 50% of the revenue from the sale of indium mined from the West Desert project determined on a Net Smelter Return ("NSR") basis. 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.
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. American West is aiming to list its securities on the ASX in H2 2021. American West has acquired interests in the following three polymetal / base metal projects in North America which it believes have the potential to generate significant economic resource inventories and robust mining proposals:
- The West Desert Project in Utah, USA;
- The Storm Copper and Seal Zinc Projects in Nunavut, Canada; and
- 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 25-km long trend with potential for the discovery of a new regional scale zinc belt. The West Desert Option (100% option to American West) provides significant cash payments and continuing leverage through ownership in American West as it funds the advancement of the West Desert project, 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: joyce@inzincmining.com