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TORONTO, July 27, 2018 (GLOBE NEWSWIRE) -- Karmin Exploration Inc. (“Karmin”) (TSXV:KAR) has
entered into a share purchase agreement (the “Purchase Agreement”) with One Valley Peru S.A.C. (as
“Buyer”) and its parent company VI Mining PLC (the “VI Mining”) for the sale of all the shares of
Karmin’s wholly-owned subsidiary Karmin Peru S.A.C. (“Karmin Peru”), which holds its 100% interest in the Cushuro
Gold Project. VI Mining is a public company in the United Kingdom whose shares trade on the NEX Exchange Growth Market (the
(“NEX Exchange”).
The purchase price payable for the shares of Karmin Peru is US$27,500,000 (the “Purchase
Price”) with such amount to be satisfied in full through the issuance by VI Mining of 5,753,138 ordinary shares in its
capital (the “Consideration Shares”) based on the 30 day volume weighted average price for the 30 days prior to
the Purchase Agreement (the “VWAP”). The Purchase Agreement also provides that to the extent the VWAP of the
ordinary shares of VI Mining on the second anniversary of closing (the “Year 2 VWAP”) is less than the VWAP, then
VI Mining will issue to Karmin such number of additional unrestricted and free-trading ordinary shares in the capital of VI Mining
as is calculated by dividing the Purchase Price by the difference between the VWAP and the higher of the Year 2 VWAP or £2.50.
Pursuant to the terms of the Purchase Agreement, Karmin and VI Mining have entered into a lock-up agreement
whereby Karmin has agreed to restrict its ability to sell the Consideration Shares until March 2, 2020, being a period of two years
from the date which VI Mining was admitted to trade on the NEX Exchange.
The closing of the transactions contemplated by the Purchase Agreement remain subject to the approval of the TSX
Venture Exchange and the satisfaction of certain other conditions precedent.
Karmin’s focus for the past several years has been and will continue to be on its 30% interest in its joint
venture with Nexa Resources in respect of the Aripuanã Zinc Project in Brazil.
David Brace, CEO and President of Karmin commented: “We are pleased that the value of this non-core asset is
being realized for the benefit of all Karmin’s shareholders. VI Mining is consolidating a position in the world-class gold mining
district that surrounds the Cushuro property and through this transaction Karmin will get exposure to the synergies that are being
created by this consolidation and should benefit from their reflection in VI Mining's share price over the term of the lock-up and
beyond” He added, “Karmin's management and Board have been and will continue to be focused on Karmin's core asset, being its
30% interest in the world class Aripuanã zinc-lead-copper-silver mining project, and we will continue our efforts to explore
Karmin's strategic alternatives to finance this asset.”
About Karmin Peru
Karmin Peru is a private closed corporation (a Sociedad Anónima Cerrada) existing under the laws of the Republic
of Peru, and holds 100% of Karmin’s right, title and interest in the mining concessions that form part of, and are known as, the
Cushuro Gold Project, located in the Province of Sanchez-Carrion within the Department of La Libertad, Peru.
About VI Mining and the Buyer
VI Mining is a Jersey, Channel Islands, company whose ordinary shares are posted and listed for trading on the
NEX Exchange under ticker symbol VIM (NEX). VI Mining is an emerging gold and silver producer focused on the development and
operation of gold and silver projects in Peru, with a market-cap of £406,410,000 as of June 27th 2018. The Buyer
is a Peruvian subsidiary of VI Mining.
About Karmin
The common shares of Karmin are listed on the TSX Venture Exchange and the Lima Stock Exchange and trade in both
markets under the symbol “KAR”. The principal business of Karmin is to acquire, explore and develop resource properties.
For further information please contact:
Disclaimer Relating to Forward-Looking Information
This news release contains forward-looking statements that are based on the belief of management and reflect
Karmin’s current expectations. Forward-looking statements include, but are not limited to, possible events and statements. The
words “potential,” “possible,” “expects,” “plans,” “scheduled,” “estimates,” “anticipates” or “believes,” or variations of such
words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might,” or “will” be taken or
occur, and similar expressions identify forward-looking statements. The forward-looking statements and information in this
press release include, but are not limited to the mineral resource estimates, results of development and operation, if any, which
may differ significantly from what is set out in the PEA and the business plans of Karmin. Such statements and information
reflect the current view of Karmin with respect to risks and uncertainties that may cause actual results to differ materially from
those contemplated in those forward-looking statements and information.
Such statements are not historical facts. Readers are cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions, forecasts, projections in the forward-looking statements will
not occur, and that actual performance and results in future periods may differ materially from any estimates or projections of
future performance or results expressed or implied by such forward-looking statements.
The Aripuanã Zinc-Lead-Silver Project and the land it relates to is an exploration property only. Accordingly,
there are a number of important factors that could cause Karmin’s actual results to differ materially from those indicated or
implied by forward-looking statements and information. Such factors relating to the Aripuanã Zinc-Lead-Silver Project include,
among others, the timing and content of work programs, results of the development of mineral properties, the interpretation of
drilling results and other geological data, the uncertainties of resource and reserve estimates, receipt and security of mineral
property titles, receipt of licenses to conduct mining activities, project cost overruns or unanticipated costs and expenses,
fluctuations in metal prices and general market and industry conditions, changes in national and local government legislation,
taxation, controls, policies and regulations, the security of personnel and assets, and political or economic developments in
Canada and Brazil, operating or technical difficulties in connection with mining or development activities, employee relations, the
speculative nature of mineral exploration and development and the risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins and flooding.
The forward-looking statements contained in this news release are made as of the date of this news release.
Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other
date. Except as required by law, Karmin disclaims any intention and assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. Additionally, Karmin undertakes no obligation to
comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
