Full Metal Zinc Signs Binding LOI to Acquire 100% of San Andres Property and Undertakes up to a $1,000,000 Financing

Full Metal Zinc Ltd. (TSXV:FZ) signed a binding letter of intent (LOI) to acquire 100% of the San Andres de la Sierra mine and processing facilities as well as the exploration land package around the area of historical operations. In conjunction with the acquisition, the Company will undertake a non-brokered financing of up to $1,000,000 through the issuance of up to 20,000,000 unites, at a price of $0.05 per unit.

As quoted in the press release:

…signed a binding letter of intent with Minera ISP, S. de R.L. de C.V. and certain of its affiliates including, Inversiones Mineras ISP San Andres, S. de R.L. de C.V., Operaciones Minera ISP San Andres, S. de R.L. de C.V. and Servicios Mineros ISP, S. de R.L. de C.V. (collectively the “Vendors”) to acquire 100% of the San Andres de la Sierra mine and processing facilities as well as the exploration land package around the area of historical operations (the “San Andres Property”). The transaction is subject to a 60 day due diligence period following which a definitive agreement may be concluded between the Company and Vendors.

Subject to receiving regulatory and any required shareholder approval for the transaction, the Company will acquire 100% of the San Andres Property and mining/processing infrastructure by issuing 10 million shares and making a one-time cash payment of US$260,000 (US$25,000 of which was paid upon signing of the binding letter of intent). The Vendors will retain a 2% NSR on land currently unencumbered by any royalty and, in addition, any existing royalty on the San Andres Property that expires, is extinguished, paid into or terminated will be replaced with a similar 2% NSR in favour of the Vendors. The Company will have the right to acquire half this royalty (1% NSR) at any time by making a one-time payment of US$5 million.

In conjunction with the aforementioned acquisition, the Company will undertake a non-brokered financing (the “Financing”) of up to $1million involving the issuance of up to 20,000,000 units at a price of $0.05 per unit, with each unit consisting of one common share and one half of one common share purchase warrant exercisable at a price of $0.10 for two years.

Click here to read the Full Metal Zinc Ltd. (TSXV:FZ) press release