CZL Moves to 80% Ownership of the High Grade Plomosas Zinc Mine
Consolidated Zinc Ltd (“CZL” or the “Company”) is pleased to announce it has re-negotiated and exercised its option to acquire additional equity, at below the original anticipated cost and will move to 80% ownership of the high grade Plomosas zinc project. CZL has purchased an additional 39% of the shares in Latin American Zinc S.A.P.I. de C.V, the Mexican company that owns 100% of the high grade Plomosas Zinc-Lead-Silver mine in northern Mexico from Retec Guaru S.A. de C.V (“Retec”), the Company’s Mexican Partner. Under the terms of this re-negotiated Tranche 2 purchase CZL will pay Retec A$500,000 and US$800,000 both in cash (instead of A$750,000 in cash and A$1,700,000 in CZL shares). In addition, the Company will pay A$700,000 (instead of A$800,000) to the original Vendors of the project Arena Exploration Pty Ltd (“Arena”) and also issue them 10% of the Shares in Latin American Zinc S.A.P.I de C.V under the terms of the original Share Sale Agreement executed in December 2014. The new ownership structure of Latin American Zinc S.A.P.I. de C.V will be as follows: Consolidated Zinc 80% Retec Guaru S.A. de CV 10% Arena Original Shareholders 10%
CZL’s Managing Director, Mr Will Dix said the move to 80% gives the Company and the market added certainty over the future direction of the Project and more direct exposure to continued exploration results. “As a Company we are excited to now hold 80% of this outstanding project and look forward to continuing to work with our partners Retec to move the project forward. We are on track to deliver our maiden JORC resource by the end of the year as we complete our initial drilling program over the next several months. We believe the recent results we have released to the market from our drilling below Level 7 have significantly de-risked the project and our decision to move to 80% ownership reflects our view that there is enormous value in the Plomosas Zinc Project.”
