logo-loader

Nubian Resources finalises due diligence on Esquilache project acquisition from Zinc One Resources

Last updated: 09:32 28 Nov 2017 EST, First published: 04:32 28 Nov 2017 EST

1511879791_agreement-7
The definitive agreement was due to take place on November 24 but has now been extended

Nubian Resources Ltd (CVE:NBR) has now completed its due diligence on the Esquilache silver-lead-zinc project in Peru and expects the definitive purchase agreement to be on December 22 this year.

As announced in September, 2017, the firm inked a binding letter of intent (LOI) with Zinc One  Resources Inc to acquire the historic underground silver mine and adjacent Virgen de Chapi prospect.

The definitive agreement was due to take place on November 24 but given the additional time required to complete due diligence, both parties agreed an extension.

"Owning the Esquilache Project in Southern Peru will give Nubian immediate exposure to a near term development opportunity," said Martin Walter, Nubian's chief executive.

"The Esquilache project contains silver lead and zinc mineralisation and a number of drill ready targets. 

"Our initial work programs will focus on working towards an initial resource calculation along with updating various past metallurgical and engineering studies."

Nubian has already advanced a deposit of C$25,000, reducing the cash amount owing on closing from to C$100,000 from C$125,000.

This will be in addition to the C$475,000 in company shares calculated on the volume weighted average price (VWAP) for the 60 calendar days preceding the date of the letter of intent and four annual advanced Net Smelter Royalty (NSR) payments of $162,500.

The project is also subject to a 2% NSR (net smelter return) of which Nubian will have the right to purchase 1% for $500,000 at any time, until the third anniversary of the first sale of gold, silver or concentrate.