Business
InZinc to Accelerate Earn-In and Payments from West Desert Option
Vancouver, British Columbia--(Newsfile Corp. - September 27, 2021) - InZinc Mining Ltd. (TSXV...
About this update from Inzinc Mining Ltd.
[{"type":"text","content":"InZinc to Accelerate Earn-In and Payments from West Desert OptionVancouver, British Columbia--(Newsfile Corp. - September 27, 2021) - InZinc Mining Ltd. (TSXV: IZN) (\"InZinc\" or the \"Company\") is pleased to announce an amending agreement (the \"Amendment Agreement\") for the acceleration of the payments and earn-in terms of the West Desert option agreement (the \"Original Agreement\") with American West Metals Limited (\"American West\"), a private Australian company. \"The accelerated payments, as well as the continuing leverage through prospective shareholdings in a new and aggressive Australian Securities Exchange (\"ASX\") - listed North American copper-zinc metal explorer, will set the stage for a new era for InZinc. This will provide the flexibility to scale up self-financed exploration programs at the Indy Sedex project in central British Columbia where very large zinc and new silver targets are now defined. It further enables InZinc to consider new value-creating prospects,\" commented Wayne Hubert, CEO of InZinc. The revised and accelerated option terms in the Amendment Agreement will result in payments to InZinc of:US$125,000 in cash upon signing of the Amendment Agreement;(a) CDN$1,000,000 in cash; (b) US$1,225,000 in cash (previously US$1,500,000); and (c) 13,385,000 in shares of American West, upon American West completing the listing of its shares on the ASX through an initial public offering or other going public transaction (an \"IPO\").Under the terms of the Amending Agreement, American West will also accelerate the reimbursement to the Company approximately USD$96,577, being the amount of the reclamation bond currently posted by InZinc with respect to the West Desert Project. Under the terms of the Original Agreement, InZinc has received an initial non-refundable cash payment of US$500,000. If, on or before June 1, 2022 (or such later date as the parties may agree to in writing), American West does not receive applications pursuant to the IPO for the issue of not less than 85,000,000 shares of American West at an issue price of AUD$0.20 per share for minimum proceeds of AUD$17,000,000; or ASX conditional approval to admit its securities to the official list of the ASX, the Amendment Agreement will be of no force and effect and the terms of the Original Agreement will be restored, including payment by Americ...