Zincore Closes Strategic Investment With First Quantum Minerals
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/10/12 -- Zincore Metals Inc. (TSX: ZNC)(LMA: ZNC) ("Zincore" or the "Company") is pleased to report that it has closed a strategic investment by way of private placement ("the Offering") with FQM (Peru) Ltd. a wholly-owned subsidiary of First Quantum Minerals Ltd. ("First Quantum") (TSX: FM)(LSE: FQM).
Under the terms of a binding Memorandum of Understanding ("MOU") announced May 8, 2012, First Quantum purchased 19,113,874 Zincore common shares at C$0.20 per share. Under the MOU, First Quantum has also committed to spend US$3 million for exploration on the Dolores project in the first year to earn an unvested 30% interest in Dolores. First Quantum has the option to spend an additional US$5 million during the next 18 months to earn an additional 20.1%, for a 50.1% interest in the project. If warranted, First Quantum has the option to fund the advancement of Zincore's Dolores copper porphyry project through exploration, development and production, to earn up to 80% of the project by achieving certain milestones as laid out in the May 8th news release.
The Dolores project is located in the copper porphyry prolific Yauri-Andahuaylas Copper District of southern Peru, approximately 40 kilometres from the Haquira deposit, which First Quantum is currently developing.
The common shares issued with respect to the Offering are subject to a four month hold period in accordance with Canadian securities laws. The net proceeds of the Offering will be used to fund a regional exploration program on Zincore's concessions and for general corporate purposes.
TD Securities Inc. acted as sole financial advisor in connection with the offering.
About Zincore
Zincore is a Vancouver-based mineral exploration company focused mainly on zinc and related base metal opportunities in the Americas, namely Peru, Mexico and Canada. The Company's common shares trade on both the Toronto and Lima Stock Exchanges under the symbol ZNC. For more information, please see our website at www.zincoremetals.com.
Forward-looking Statements: Statements in this release that are forward-looking, in particular with regards to the potential of the Dolores project, are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Annual Information Form of Zincore dated March 19, 2012 which is filed with Canadian securities regulatory authorities and available on SEDAR (www.sedar.com). Such information contained herein represents management's best judgment as of the date hereof based on information currently available.
Contacts:
Zincore Metals Inc.
Adam Ho
Manager, Investor Relations
(604) 669-6611 ext. 4
(604) 669-6616 (FAX)
aho@zincoremetals.com
www.zincoremetals.com
