TORONTO, ONTARIO--(Marketwired - Nov. 16, 2016) - Morumbi Resources Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") is pleased to announce that, further to the Company's September 22, 2016 announcement of its agreement (the "Agreement") with certain affiliates of Nyrstar NV (collectively "Nyrstar") to purchase 100% of Nyrstar's indirect subsidiary American Pacific Honduras SA de CV ("AMPAC") and its flagship asset, the producing El Mochito zinc mine (collectively "El Mochito") in Honduras (the "Transaction"), the Company has received conditional approval from the TSX Venture Exchange ("TSXV") for the Transaction and has submitted its regulatory application to the Honduran Commission for the Defense and Promotion of Competition for approval.
The Company was pleased with the productive nature of the TSXV review and anticipates being able to satisfy the standard remaining conditions concurrently with the completion of the Transaction. On the Honduran side, ongoing discussions with Nyrstar and Honduran government officials to date have been positive and Morumbi management is optimistic that approval can be obtained ahead of the statutory waiting period outlined in Honduran law and is therefore targeting an approval by the end of December 2016. Receipt of this approval is a key escrow release condition for the subscription receipt financing the Company carried out in connection with the Transaction, which closed on October 13, 2016.
Other outstanding conditions of the Transaction continue to move forward as well, with negotiations of the Transition Services Agreement and Off-take Agreement between the Company and Nyrstar nearing completion.
Commenting on the approval process, Chris Buncic President and CEO, stated, "Morumbi is on pace to complete the acquisition of the El Mochito mine within the timeline set out previously. We are keen to complete the acquisition and take over operations at the mine in order to begin executing on our strategy to bring about sustainable operational improvements. We are confident of increasing efficiency at the mine while continuing to be a meaningful contributor to the Honduran economy, its export sector and the local community."
About Morumbi Resources
Morumbi is a public company historically focused on evaluating resource opportunities. The Company recently announced a transaction to acquire the El Mochito mine in Honduras from Nyrstar NV, and is working to close this acquisition by the end of 2016. The Company has been evaluating producing and advanced development stage mineral resource opportunities principally in Latin America. It also has a legacy light oil property in northwest Alberta. The Company trades on the TSX Venture Exchange under the symbol "MOC".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This press release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.
Forward-looking information is based on reasonable assumptions that have been made by Morumbi as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Morumbi to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; that all conditions precedent to the Offering will be met; that any accretive acquisitions, as a result of current discussions pertaining to mineral resource assets in Latin America or otherwise, will be completed; problems inherent to the marketability of base and precious metals; industry conditions, including fluctuations in the price of base and precious metals, fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects Morumbi; stock market volatility; competition; risk factors disclosed in Morumbi's most recent Management's Discussion and Analysis available electronically on SEDAR; and such other factors described or referred to elsewhere herein, including unanticipated and/or unusual events. Many such factors are beyond Morumbi's ability to control or predict.
Although Morumbi has attempted to identify important factors that could cause actual outcomes to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate as actual outcomes and future events could differ materially from those reliant on forward-looking information.
All of the forward-looking information given in this press release is qualified by these cautionary statements and readers are cautioned not to put undue reliance on forward-looking information due to its inherent uncertainty. Morumbi disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by law. This forward-looking information should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.