Canada's Silvermet Inc has announced that it has signed a heads of agreement with the Korea Zinc Company Limited.
The terms of the agreement are as follows:
1. Korea Zinc will complete a private placement into Silvermet of USD 3.0 million at USD 0.10 per share, subject to final due diligence
2. Korea Zinc and Silvermet will form a technical committee for current and future operations
3. Korea Zinc has agreed to finance and construct a second and third kiln in Turkey, subject to a final feasibility study
4. Korea Zinc will nominate a member to the Board of Directors of Silvermet
5. Korea Zinc will purchase 100% of Silvermet's zinc concentrate output from all plants for a period of 10 years, renewable by mutual agreement
The agreement is subject to final due diligence and respective Board and regulatory approval.
Mr Stephen G Roman chairman & CEO of Silvermet said that "We are extremely pleased and proud of our association with Korea Zinc Company who are making this significant move to align them with Silvermet and be part of the EAFD business in Turkey."
He said that "With the financial backing and tremendous technical expertise of Korea Zinc, Silvermet will become a significant processor of EAFD and producer of zinc concentrates."
Source: Steel Guru
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