Consolidated Zinc Limited (ASX: CZL; “Consolidated Zinc” or “the Company”) is pleased to announce that the Company and Retec Guaru S.A. de C.V (“Retec”) have entered into a Binding Term Sheet (“Term Sheet”), that will see Consolidated Zinc acquire the remaining 10% interest in its 90% owned subsidiary that holds the Plomosas Mine, Minera Latin American Zinc S.A.P.I de C.V. (“MLAZ”).
The purchase consideration for the acquisition of the Retec interest in MLAZ is a 1% Net Smelter Return Royalty (the “Royalty”) from the sale of zinc and lead concentrates produced from Plomosas.
Completion of the agreement of the acquisition is expected by 30 September 2019.
Consolidated Zinc Managing Director Mr Brad Marwood commented “the acquisition of a 100% interest in Plomosas completes the simplification of the ownership structure from the Company’s original 51% shareholding less than 9 months ago, with the acquisitions of the additional 49% interests acquired at attractive considerations to add shareholder value.”
For and on behalf of the Board.
Brad Marwood
Managing Director
ABOUT CONSOLIDATED ZINC
Consolidated Zinc Limited (ASX: CZL) owns 100% of the historic Plomosas Mine, located 120km from Chihuahua City, Chihuahua State, Mexico. Chihuahua State has a strong mining sector with other large base and precious metal projects in operation within the state. Historical mining at Plomosas between 1945 and 1974 extracted over 2 million tonnes of ore grading 22% Zn+Pb and over 80g/t Ag. Only small-scale mining continued to the present day and the mineralised zones remain open at depth and along strike.
The company has recommenced mining at Plomosas and is committed to exploit the potential of the high-grade Zinc, Lead and Silver Mineral Resource through the identification, exploration and exploitation of new zones of mineralisation within and adjacent to the known mineralisation with a view to identify new mineral resources that are exploitable.
