VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2012) - Zincore Metals Inc. (TSX:ZNC)(LMA:ZNC) ("Zincore" or the "Company") reports that the date for signing the Formal Agreement outlining the Dolores joint venture details with First Quantum Minerals Ltd ( "FQM" ) has been mutually extended by both companies. As originally described in the Company's news release dated May 8th, 2012, it had been anticipated that the Formal Agreement would be completed within 60 days of the signing of the binding Memorandum of Understanding ("MOU").
Zincore President and CEO, Jorge Benavides, commented, "Together with FQM we have made significant progress on documenting the strategic partnership over Dolores. The process for producing the Formal Agreement which maps out the Dolores joint venture details has however taken longer than anticipated. We expect to conclude the documentation shortly and will report back to the market on completion."
Mr. Benavides further commented, "First Quantum has already completed a private placement of C$3.8 million at $0.20 share into Zincore and purchased an additional 22,953,871 Zincore common shares in the secondary market to bring their ownership level in the Company to 19.99%. We have also appointed Mr. Mike Parker, the First Quantum-nominated representative, to our Board of Directors. Suffice to say, we have already developed an excellent relationship and look forward to continue to develop this relationship with completion of the Formal Agreement."
Under the terms of the signed and binding-MOU, First Quantum can earn up to an 80% interest in Zincore's Dolores project over eight years by achieving specified objectives.
Dolores Project Earn-In Overview
- First and Second Earn-Ins: First Quantum commits to spend US$3 million at Dolores within one year of signing a formal agreement (the "Formal Agreement Date") to earn an unvested 30% interest in Dolores
- 30% interest will vest if First Quantum provides written notice (the "Vesting Notice") within 60 days of the first anniversary of the Formal Agreement Date that it will commit to spend an additional US$5 million (the "Second Earn-In") within 18 months of the Vesting Notice to earn and additional 20.1%
- Zincore will be the operator until First Quantum has fulfilled the requirements of the Second Earn-In with oversight from First Quantum by way of a technical committee
- Third Earn-In: First Quantum can earn an additional 9.9% in Dolores by producing a NI-43-101 compliant Indicated resource estimate (and associated technical report) of more than one million tonnes of contained copper at a 0.20% cut-off grade within three years following the Vesting Notice
- Fourth Earn-In: First Quantum will have the option to earn an additional 10% of Dolores by providing within four years of the Vesting Notice studies in sufficient detail that under industry customs a fully informed construction decision can be made
- Fifth Earn-In: First Quantum can acquire an additional 10% interest in Dolores provided that commercial production at Dolores commences within 96 months of the Formal Agreement Date. First Quantum will be responsible for funding all costs associated with construction of a mine and bringing the Dolores Area to commercial production including Zincore's share of capital expenditures for construction
The Dolores Copper Porphyry Project
Zincore's 100%-owned Dolores Project is located on the Company's Accha Zinc Oxide District in the Yauri-Andahuaylas Copper belt in southern Peru, near significant copper mines and developments such as Xstrata's Las Bambas and Tintaya, HudBay's Constancia and First Quantum's Haquira. To date, Zincore has published results from 10 drill holes, two trenches and a number of surface samples at Dolores.
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.
About First Quantum Minerals
First Quantum Minerals is a rapidly growing mining and metals company currently operating two mines and developing five projects worldwide. The Company's core strength is discovering, developing and operating mines efficiently and cost-effectively. Its stated aim is to become a globally diversified mining and metals company. (www.first-quantum.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.