Zinc One Resources Inc. and Forrester Metals Inc. announced they have entered into an agreement where Zinc One will acquire all of the issued and outstanding common shares of Forrester and complete a private placement financing of $10 million.
“We believe that this transaction is a tremendous step in moving Zinc One toward becoming a zinc producer,” said Jim Walchuck, CEO of Zinc One. “Although there are other quality assets in Forrester, it is the high-grade zinc Bongara and Charlotte Bongara properties that will become the flagship project of Zinc One.”
Martin Walter, president of Forrester, said, “Combining Forrester’s projects with Zinc One’s strong corporate finance team along with the proposed financing ensures further development at the Bongara zinc project and also offers Forrester shareholders a nice premium to the current share price.”
The transaction still requires approval by Forrester shareholders, and, if required, by Zinc One shareholders as well.
Zinc One is a Vancouver-based company focused on the acquisition, exploration and development of prospective and advanced zinc projects. Forrester Metals is a Canadian mining company focused on the exploration and development of Peru’s mineral potential. It has six projects including two zinc properties, Azulcocha West and the recently acquired Bongará zinc mine and the Charlotte Bongará zinc project.