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InZinc Signs Letter of Intent to Option West Desert Project
Vancouver, British Columbia--(Newsfile Corp. - December 22, 2020) - InZinc Mining Ltd. (TSXV:...
About this update from Inzinc Mining Ltd.
[{"type":"text","content":"InZinc Signs Letter of Intent to Option West Desert ProjectVancouver, British Columbia--(Newsfile Corp. - December 22, 2020) - InZinc Mining Ltd. (TSXV: IZN) (\"InZinc\" or the \"Company\") is pleased to announce that it has signed a non-binding Letter of Intent (\"LOI\") with American West Metals Limited (\"American West\"), a private Australian company, outlining the principal terms and conditions of an Option Agreement that American West and InZinc intend to enter into and under which American West may acquire InZinc's West Desert Project (\"Project\") in Utah (the \"Option Agreement\"). The Option Agreement will be subject to, amongst other matters, TSX Venture Exchange approval.\"The Company anticipates that the proposed transaction will benefit InZinc by providing ongoing leverage to advancements at West Desert as well as the financial means to consider next steps at its prospective Indy Sedex project and other opportunities,\" said Wayne Hubert, CEO of InZinc Mining. The principal terms of the LOI include:An initial cash payment of US$500,000 to InZinc upon signing of the Option Agreement.Required payments to InZinc during the 24 months following the signing of the Option Agreement to comprise:CDN$1,000,000 within 30 days of American West listing its shares on the Australian Securities Exchange (\"ASX\") through an initial public offering or other process or 12 months after signing of the Option Agreement, whichever is earlier;US$1,500,000 upon the announcement by American West to the ASX of a completed Prefeasibility Study for the West Desert Project or 24 months after signing of the Option Agreement, whichever is earlier; andCDN$2,500,000 by way of free trading shares of American West. If American West has not been admitted to the Official List of the ASX within 12 months of signing of the Option Agreement, InZinc may elect to receive CDN$1,250,000 in cash from American West in lieu of shares. Indium Profit ShareIf American West exercises the Option Agreement and acquires the West Desert Project, InZinc will receive 50% of the revenue from the sale of indium mined from the West Desert Project determined on a Net Smelter Return basis in accordance with generally accepted industry practice (\"NSR\"). American West will have the right to reduce the NSR to 25% by paying InZinc US$5,000,000 in cash at any time prior to the f...