VANCOUVER, Jan. 18, 2018 /CNW/ - Blue Moon Zinc Corp. (TSXV: MOON; US OTC: BMOOF) (the "Company") is pleased to announce that it has agreed to buyback a 10% Net Profit Interest ("NPI") on the Company's 100% owned Blue Moon zinc project. The NPI was originally issued in 1987 pursuant to a transaction between Westmin Resources Limited (now Boliden) and Colony Pacific Exploration Ltd. (now Imperial Metals). The current NPI holder, Northern Empire Resources Corp., has agreed to accept $20,000 cash and the issuance of 3 million common shares of the Company in return for the buyback.
Patrick McGrath, Chief Executive Officer, stated "The buyback of the NPI solidifies our ownership and economic interest in the Blue Moon project. We believe the buyback will be accretive to the project and deliver significant value to our shareholders over the long term including our Preliminary Economic Assessment ("PEA") expected later in Q1 2018."
The Company also granted 1,000,000 stock options to consultants, each option being exercisable for a five-year term at a price of $0.08 per common share. The options are governed by the terms and conditions of the Company's stock option plan.
About Blue Moon
The 100% owned Blue Moon polymetallic deposit has a Mineral Resource estimate of 3.7 million indicated tons with a grade of 8.3% zinc equivalence including approximately 377 million pounds of zinc and 4.1 million inferred tons with a grade of 7.8% zinc equivalence including approximately 395 million pounds of zinc with significant credits of copper, silver and gold. The resource is open at depth and along strike and historical metallurgical testing indicates excellent recovery and a clean zinc concentrate. A NI 43-101 report detailing the resource and summarizing metallurgical recoveries is available on the company's website (www.bluemoonmining.com) and filed on SEDAR on November 13, 2017. The Company plans to advance the Blue Moon project through to feasibility, permitting and ultimately production.
Jack McClintock, P. Eng, a Director of the Company, is a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for this press release.
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 release. Resource estimates included in this news release are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions set forth in the relevant technical report and otherwise, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for zinc, the results of future exploration, uncertainties related to the ability to obtain necessary permits, licenses and titles, changes in government policies regarding mining, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
The securities referenced in this news release have not and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
SOURCE Blue Moon Zinc Corp.
For further information: Patrick McGrath, CEO, 1-832-499-6009, [email protected]; For additional information related to communications, media relations and investor relations please contact: Terry Bramhall, 1-604-833-6999, [email protected]