Toronto, June 29, 2017 – Nevada Zinc Corporation (“Nevada Zinc” or the “Company”) (TSX-V: NZN) is very pleased to announce the restructuring of the Company’s Yukon gold assets and a concurrent financing, the net proceeds from which will be allocated to fund the 2017 and 2018 exploration programs for the Yukon gold assets. Drilling is scheduled to begin during the second week of July.
The Company incorporated a wholly-owned private subsidiary, Generic Gold Corporation (“Generic”). On May 30, 2017 Nevada Zinc vended, on a tax free basis, its Yukon gold properties into Generic. As consideration for the sale of its gold properties to Generic, the Company received 25,000,000 common shares of Generic at a deemed value of $0.30 per share for aggregate share consideration of $7,500,000.
Subsequent to the closing of the purchase and sale transaction with Nevada Zinc, Generic commenced financing activity to raise approximately $2,500,000 (the “Financing”). In order to commence and fund exploration immediately a first tranche of the Financing closed on June 27th for aggregate gross proceeds of $890,500. The first tranche consisted of units (“Units”) in the amount of $829,500 (2,765,000 Units) and flow-through units (“FT Units”) in the amount of $61,000 (152,500 FT Units). The Units were priced at $0.30 per Unit and consisted of one common share of Generic and one common share purchase warrant. Each warrant gives the holder the right to purchase one common share of Generic at a price of $0.50 per share and the warrant has an expiry date of 36 months from the final closing date of the Financing.
The FT units were priced at $0.40 per Unit and consisted of one common share of Generic and one common share purchase warrant. Each warrant gives the holder the right to purchase one common share of Generic at a price of $0.50 per share and the warrant has an expiry date of 36 months from the final closing date of the Financing. A finders fee on the first tranche equal to 8% of the dollar amount of Units and FT Units sold and broker warrants equal to 8% of the number of Units and FT Units sold were paid by Generic. The finders fee was paid in Units in lieu of cash and aggregated to 237,467 Units. The broker warrants aggregated to 233,400 Units. A broker warrant gives the holder the right to purchase a Unit at $0.30 per Unit and the broker warrants expire 24 months after the Generic common shares are listed on a recognized stock exchange.
Newly appointed President and CEO of Generic, Kelly Malcolm, commented on the commencement of Generic’s initial work program; “Bruce and the team at Nevada Zinc have built an impressive portfolio of properties and advanced several to the drill-ready stage. These properties are in strategic land positions and show signs of significant hydrothermal systems. The Yukon has seen a dramatic increase in mineral exploration activity within the past year. Since 2016, major gold producers have invested approximately $667 million into junior Yukon gold exploration companies through acquisitions, earn-in positions, or equity stakes. We are very excited to begin drill testing several of the multi-parameter targets generated by Nevada Zinc, as well as further advancing the properties for future drilling campaigns. The 2017 work program will include 1,500 metres of diamond drilling on Livingstone, 1,500 metres of RC drilling on Goodman, as well as induced polarization geophysics, trenching, soil sampling, and prospecting on all of our key projects to generate targets for future drilling campaigns.”
About Nevada Zinc
Nevada Zinc is a discovery driven, early-stage mineral exploration company with a proven management team focused on identifying unique opportunities in mineral exploration that can provide significant value to its shareholders. The Company’s existing projects are located in Nevada and Yukon.
For further information contact:
Nevada Zinc Corporation
Suite 1660 – 141 Adelaide St. West
Toronto, Ontario M5H 3L5
Bruce Durham, President and CEO of Nevada Zinc Corporation
Generic Gold Corporation
Kelly Malcolm, President and CEO
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 news release.This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.