Something for the future. Northern Empire inherited a 10% Net Profit Interest agreement on an old zinc property in California. Zinc is hot now so this might make it to production. If it does, stock should do well and NM will have 3 million shares to sell. In the meantime, they get $200K cash to help offset expenses.
VANCOUVER, Jan. 18, 2018 /CNW/ - Blue Moon Zinc Corp. (TSXV: MOON; US OTC: BMOOF) (the "Company") is pleased to announce that it has agreed to buyback a 10% Net Profit Interest ("NPI") on the Company's 100% owned Blue Moon zinc project. The NPI was originally issued in 1987 pursuant to a transaction between Westmin Resources Limited (now Boliden) and Colony Pacific Exploration Ltd. (now Imperial Metals). The current NPI holder, Northern Empire Resources Corp., has agreed to accept $20,000 cash and the issuance of 3 million common shares of the Company in return for the buyback.
Patrick McGrath, Chief Executive Officer, stated "The buyback of the NPI solidifies our ownership and economic interest in the Blue Moon project. We believe the buyback will be accretive to the project and deliver significant value to our shareholders over the long term including our Preliminary Economic Assessment ("PEA") expected later in Q1 2018."
The Company also granted 1,000,000 stock options to consultants, each option being exercisable for a five-year term at a price of $0.08 per common share. The options are governed by the terms and conditions of the Company's stock option plan.
About Blue Moon
The 100% owned Blue Moon polymetallic deposit has a Mineral Resource estimate of 3.7 million indicated tons with a grade of 8.3% zinc equivalence including approximately 377 million pounds of zinc and 4.1 million inferred tons with a grade of 7.8% zinc equivalence including approximately 395 million pounds of zinc with significant credits of copper, silver and gold. The resource is open at depth and along strike and historical metallurgical testing indicates excellent recovery and a clean zinc concentrate. A NI 43-101 report detailing the resource and summarizing metallurgical recoveries is available on the company's website (www.bluemoonmining.com) and filed on SEDAR on November 13, 2017. The Company plans to advance the Blue Moon project through to feasibility, permitting and ultimately production.