INZINC MINING LTD. ("IZN")
BULLETIN TYPE: Property-Asset or Share Disposition Agreement
BULLETIN DATE: June 3, 2021
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing documentation pertaining to an Option Agreement dated April 15, 2021 (the "Agreement"), between InZinc Mining Ltd. (the "Company") and American West Metals Limited - a private Australian company ("AWM"), the Company has granted AWM an exclusive option to earn up to a 100% undivided interest in the Company's West Desert Project, consisting of patented and unpatented claims and mineral leases, located in Utah, USA.
Under the terms of the Agreement, AWM can earn a 100% interest in the West Desert Project by completing the following:
1) an initial non-refundable cash payment of US$500,000 to the Company on the later of the execution of the Agreement and the second business day following regulatory and shareholder approval for the transactions contemplated by the Agreement (the "Effective Date");
2) payments to the Company during the 24 months following the Effective Date of the Agreement to comprise:
i. CDN$1,000,000 within 30 days of AWM listing its shares on the Australian Securities Exchange ("ASX") through an initial public offering or other going public transaction ("IPO") or 12 months after the Effective Date, whichever is earlier;
ii. US$1,500,000 upon the announcement by AWM to the ASX of a completed Prefeasibility Study for the West Desert Project or 24 months after the Effective Date, whichever is earlier; and
iii. CDN$2,500,000 by way of shares of AWM ranking equally with the shares of AWM issued under the IPO (the "Consideration Shares"). If AWM has not completed the IPO on the ASX within 12 months of the Effective Date, the Company may elect to receive CDN$1,250,000 in cash from AWM in lieu of Consideration Shares. If AWM has not completed the IPO on the ASX within 24 months of the Effective Date, the Company may elect to receive CDN$2,500,000 in cash in lieu of Consideration Shares.
For further details, please refer to the Company's press releases dated December 22, 2020, April 16, 2021 and June 2, 2021.
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