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TORONTO, July 24, 2024 (GLOBE NEWSWIRE) -- Nevada Zinc Corporation (“Nevada Zinc” or the “Company”) (TSX-V: NZN) is pleased to announce that the Company has entered into a definitive agreement dated July 24, 2024 (the “Agreement”) with an arm’s length third party (the “Purchaser”) pursuant to which the Company agreed to sell a portion of its interest in its mineral claims located in Eureka County, Nevada (the “Property”).
The Property is made up of 203 mineral claims located in Eureka County, Nevada (the “Property”) which are comprised of:
| (i) | 1 patented claim and 26 unpatented lode claims, all of which are 100% legally and beneficially owned by the Company’s wholly owned subsidiary, Lone Mountain Zinc Ltd. (collectively, the “Owned Claims”); and |
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| (ii) | 176 unpatented lode claims (the “Leased Claims”) held by the Company through a long-term lease agreement (the “Lease”). |
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Pursuant to the terms of the Agreement, the Purchaser agreed to purchase and the Company agreed to sell a 25% beneficial interest in the Company’s rights and interests in and to the Lease in respect of the Leased Claims and the Company agreed to record a deed of trust against the Owned Claims in favour of the Purchaser, for cash consideration of US$116,908, which was paid to the owner of the Lease for the purpose of keeping the Lease in good standing.
Additionally, pursuant to the terms of the Agreement the Company will also grant the Purchaser an exclusive option (the “Option”) to acquire: (i) 100% of the Company’s right, title and interest in and to the Owned Claims; and (ii) 100% of the Company’s rights and interests in and to the Lease in respect of the Leased Claims. Under the terms of the Agreement, the Purchaser can exercise the Option by:
| (i) | issuing to the Company that number of common shares in the capital of the Purchaser (the “Consideration Shares”) having an aggregate value of $1,000,000 based on the 10-day volume weighted average trading price of the common shares of the Purchaser; and |
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| (ii) | paying to the Company a cash fee in the amount of $100,000. |
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The grant of the Option constitutes a “Reviewable Disposition” as defined in Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets of the TSX Venture Exchange (the “TSXV”). As such, the Option is subject to approval by the TSXV and is and is also expected to be subject to approval by the Company's shareholders. If shareholder approval is required, the Company intends to seek such approval at a special meeting of its shareholders (the “Meeting”). Further information regarding the transaction will be contained in an information circular that the Company will prepare, file and mail to the shareholders of Nevada Zinc in connection with the Meeting.