Zincore Metals Inc.
TSX : ZNC

Zincore Metals Inc.

November 08, 2006 08:00 ET

Zincore Metals Closes IPO and Commences Trading on the TSX

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2006) -

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S., AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Zincore Metals Inc. (TSX:ZNC) ("Zincore"), a Canadian exploration company with zinc assets in Peru, has closed its initial public offering ("IPO") of 38 million common shares at $0.50 per share. Trading of Zincore shares will begin today on the Toronto Stock Exchange under the symbol ZNC.

"The success of our IPO demonstrates the quality of the zinc asset portfolio Zincore has assembled," said Timo Jauristo, Zincore's President and CEO. "With the completion of our IPO and the receipt of the Accha drilling permit, we will initiate our definition and expansion drilling program on the Accha-Yanque project and begin exploration on our other properties. The improving outlook for zinc prices provides a positive backdrop as we move aggressively to add value to our assets."

Net proceeds of $17.8 million from the IPO will be used by Zincore for exploration, drilling and technical work on the Accha-Yanque project and its other zinc properties, as well as general and administrative costs and general working capital.

The offering was underwritten by a syndicate led by Canaccord Capital Corporation, and including Raymond James Ltd. and Octagon Capital Corporation. Zincore has granted the underwriters a 30-day option to purchase an additional two million shares at the IPO price to cover over-allotments.

Zincore's portfolio of assets includes the advanced Accha-Yanque property in southern Peru, a 30-kilometre long belt that contains historic and current resources and numerous other occurrences of zinc oxide mineralization. Zincore also has seven earlier stage zinc properties, all in southern Peru. In addition, the company has signed a letter of intent with Brett Resources Inc. ("Brett") to earn, subject to conditions, up to an 80% interest in Brett's Cerro Condorini zinc property in southern Peru.

Zincore was formed in 2005 as a wholly owned subsidiary of Southwestern Resources Corp. ("Southwestern") to maximize the value of Southwestern's zinc assets in Peru. Southwestern holds 38.6 million shares in Zincore (a 51.74% interest prior to any exercise of the over-allotment option). As disclosed in Zincore's prospectus, Southwestern's shareholdings in Zincore are subject to escrow provisions, and 34 million of such shares are also subject to a two-year lock-up agreement.

About Zincore

Zincore's strategy is to become a leading, low-cost zinc producer with the immediate objective of advancing its Accha-Yanque zinc oxide project toward a development decision through a disciplined process of exploration, drilling and resource definition, and technical studies. The company holds a portfolio of other zinc exploration properties in southern Peru and intends to pursue additional zinc opportunities elsewhere in Latin America and China.

Cautionary Note Regarding Mineral Resource Estimates

The qualified person for the Accha-Yanque property is L.D.S. Winter, P.Geo., an independent consulting geologist as defined under NI 43-101. Historical mineral resource estimates have not been reconciled to the mineral resource categories of NI43-101 and sufficient work has not been done to classify these estimates as current mineral resources. For details on the Accha historic mineral resource estimates and the Yanque current mineral resource estimate, see Zincore's prospectus relating to its IPO dated October 26, 2006, available on SEDAR.

Forward-looking Statements

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the prospectus of Zincore in connection with the IPO which is filed on SEDAR. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Zincore does not assume the obligation to update any forward-looking statements.


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