Zinc
One (TSX: $Z.V) (OTC: $ZZZOF) Completes
Forrester (TSX-V: $VEM.H) Acquisition and Appoints Chief Operating Officer; @zinconeinc
Vancouver, Canada – June 2, 2017 - Zinc One Resources Inc.
(TSXV:
Z) (OTC
Pink: ZZZOF) and
Forrester Metals Inc. (TSX-V: VEM.H) (“Forrester”) are pleased to announce,
further to their news releases on February 1, 2017, March 7, 2017, and May 18,
2017, that Zinc One has received all necessary documents and approvals and
completed its acquisition of all the issued and outstanding common shares of
Forrester (the “Transaction”). Together with
the acquisition, Zinc One recently closed its private placement financing of $10,000,000
(the “Private Placement Financing”). Zinc One is now fully funded to move
forward with the exploration and development of the high-grade, zinc-oxide
Bongara Mine Project.
Further,
Zinc One is pleased to welcome Dr. William “Bill” Williams as its new Chief
Operating Officer. Dr. Williams is the
former CEO of Forrester and has been a director of Zinc One since May 24th,
2017.
Dr.
Williams commented, “I am very pleased to join Zinc One and continue the work
Forrester has initiated to advance the Bongara Zinc-Oxide Mine Project. It is a
great opportunity to be part of the team developing the Bongara Zinc-Oxide Mine
Project as I believe its many positive attributes, including the exceptional
high-grade zinc at or near the surface, the favorable metallurgy as
demonstrated by the previous operation, and a mining-friendly jurisdiction,
give this project an edge over many other lower-grade zinc deposits. Over many years, Forrester has developed a
solid network in Peru that will continue being instrumental in getting the
Bongara Zinc-Oxide Mine Project back in production in the fastest possible
manner. Zinc One is now well funded and
managed by a group with a wealth of experience in mine design, permitting,
construction and operations. In addition, the Company is backed by a succesfull
and well-connected group of financial market participants.”
James
Walchuck, CEO of Zinc One added, “We consider ourselves fortunate to welcome
Bill Williams to our team. Over the last few months we have worked closely with
Bill and developed a great appreciation for his skill and professionalism. It
is a rare occurrence to be able to acquire what I believe is an exceptional
project along with a seasoned team already well versed in the project. I look
forward to continuing what has been a seamless transition and furthering the high quality work underway in Peru.”
Also
joining the Zinc One team in Peru are Silvia Dedios, General Manager, and Roger
Riquelme, Vice President Exploration.
Ms. Dedios served in various management positions for Forrester and its
predecessors over the last ten years and for nearly 20 years prior to that was
a general, finance, and sales manager for various manufacturing companies in
Peru. In addition, she served as a
director for SEDAPAL from 2013-2016 and ElectroPeru from 2012-2016. She holds a B.S. in Administrative Science
from the University of Lima and an M.B.A. from ESAN.
Mr.
Riquelme is a geologist with over 30 years experience working in Peru,
Colombia, and Mexico for various companies including Votarantim Metals at their
Florida Canyon zinc project and Anglo Gold Ashanti, Phelps Dodge, Minera del
Madrigal, and Minera Katanga on exploration and development projects as well as
mine operations. His extensive experience
in Peru included not only the management of project evaluations and
development, including drilling programs, but management of permitting
protocols and community relations. Mr.
Riquelme holds a B.S. in Geology from the National University of Arequipa.
Details of the Transaction
The
Transaction was effected by way of a court approved plan of arrangement under
the Business Corporations Act (Ontario).
Under the terms of the Agreement, each shareholder of Forrester received
one common share of Zinc One (“Zinc One Share”) for every 5.5 common shares of
Forrester (“Forrester Shares”). As a
result, Zinc One issued a total of 24,259,812 Zinc One Shares to the
shareholders of Forrester.
All
outstanding options and warrants of Forrester will remain outstanding and be
adjusted to give effect to the Transaction in accordance with their respective
terms or pursuant to the Agreement. Further,
certain directors and officers of Forrester settled all severance payments by
the issuance of 4,101,888 Forrester Shares, which were subsequently converted
into 745,797 Zinc One Shares.
As
a result of closing the Transaction and
the Private Placement Financing, Zinc One now has 98,701,718 issued and
outstanding shares.
About Bongará Zinc Mine and Charlotte Bongará Zinc Project
The
Bongará Zinc-Oxide Project consists of the Bongará Zinc-Oxide Mine and the
Charlotte Bongará Zinc-Oxide Project. At
the former, zinc-oxide mineralization was discovered in 1974 and since then
various companies have completed exploration programs across the area; mining
of the zinc oxides with grades exceeding 20%, occurred for 17 months in 2007-08
until declining zinc prices led to a shutdown.
The previous operator estimated the following historical resources after
mining ceased:
|
Historical Resource Category
|
Mineral Type
|
Tonnes
|
Zn
(%)
|
|
Measured
|
Oxides
|
329,236
|
22.45
|
|
Indicated
|
Oxides
|
678,560
|
21.20
|
|
Total
M + I
|
Oxides
|
1,007,796
|
21.61
|
|
Inferred
|
Oxides
|
209,018
|
21.18
|
(Note: Historical resource estimate was previously prepared on the
Bongará Zinc-Oxide Mine by the previous operator, Corianta S.A. in 2011. Please
see cautionary statement on historical resource estimate below.)
The mineralization is concentrated along and proximal
to a NW-trending anticlinal axis over approximately three kilometres. From the southeast edge of the project, the
Mina Grande, Mina Chica and Bongarita mine areas were subject to sampling from
pits and trenches as well as shallow drilling over a distance of approximately 1.2
kilometres. This zinc-oxide mineralization
appears to continue for approximately one kilometre to the northwest into an
area known as Campo Cielo, where additional high-grade, zinc-oxide
mineralization in historical pits and trenches was encountered.
The
adjacent Charlotte Bongará Zinc-Oxide Project, located approximately seven kilometres
northwest of the Bongará Zinc-Oxide Mine, was initially explored by Solitario
Resources in 1994. Cominco Ltd. later
completed five drill holes for 592 metres within the property, two of which
encountered near-surface, high-grade, zinc-oxide mineralization. Between 2007 and 2011, Rio Cristal Zinc
optioned the project and eventually drilled 95 drill holes for a total of 7,722
metres on the Cristal and Charlita prospects.
Some of the Rio Cristal drill results included 29.5% Zn across 15.5
metres, 26.1% Zinc across 12.5 metres, and 29.7% Zinc across 11.5 metres (the
cited intervals are drill-intercept widths and true widths are unknown).
The
historical mining activity and the results from historical drilling, trenching,
and pitting along this four-kilometre trend of zinc-oxide mineralization
certainly merit a re-evaluation of the Bongará Zinc Mine as well as further
exploration of both the Campo Cielo area and the Charlotte Bongará zone.
Zinc One is focused on the
acquisition, exploration and development of prospective and advanced zinc
projects in mining friendly jurisdictions.
Zinc One’s key assets are the past producing Bongará Zinc-Oxide Mine
Project and Charlotte Bongará Zinc-Oxide Project in Peru.. The Company is managed
by a proven team of exploration geologists, and engineers having previously constructed
and operated successful mining operations.
For more information, please visit the website at WWW.ZINCONE.COM or
contact James Walchuck, CEO and President at (604) 683-0911 or email at info@zincone.com.
ON BEHALF OF THE BOARD OF
DIRECTORS OF
ZINC ONE RESOURCES INC.
“signed”
_______________________
James Walchuck
CEO and President
Qualified Person
The technical content of this news release has been reviewed and
approved by Bill Williams, COO and Director of Zinc One and a qualified person
as defined by National Instrument 43-101.
Cautionary Statement on Historical Resource
Estimate
The
historical resource estimate was prepared by the previous operator, Corianta
S.A. in an internal report dated June 13, 2011 on the Bongará Zinc Mine. The historical resource estimate used
“measure resources”, “indicated resources” and “inferred resources”, which are
categories set out in National Instrument
(“NI”) 43-101. These categories are considered reliable as
well as relevant as it represents the main target for future exploration and
development work on the Bongará Zinc-Oxide Mine. The Qualified Person has not completed
sufficient work to verify this historical estimate as a current resource
estimate and is not treating the historical estimate as a current resource
estimate. Additional surface samples, trench samples, and drill hole samples will
be required to comply with NI 43-101 guidelines in order to provide a current
resource estimate.
Forward-Looking Statements
Information
set forth in this news release contains forward-looking statements that are
based on assumptions as of the date of this news release. These statements
reflect management’s current estimates, beliefs, intentions and expectations.
They are not guarantees of future performance. Zinc One cautions that all
forward looking statements are inherently uncertain and that actual performance
may be affected by a number of material factors, many of which are beyond their
respective control. Such factors include, among other things: risks and
uncertainties relating to Zinc One’s limited operating history, ability to
complete the proposed transaction with Forrester (including obtaining all
necessary shareholder and regulatory approvals), ability to close the private
placement financing and the need to comply with environmental and governmental
regulations. Accordingly, actual and future events, conditions and
results may differ materially from the estimates, beliefs, intentions and
expectations expressed or implied in the forward looking information. Except as
required under applicable securities legislation, Zinc One does not undertake
to publicly update or revise forward-looking information.
Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy or accuracy
of this release
Zinc One
Resources Inc. (TSXV: Z) (OTC Pink:
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