First Quantum Minerals and Zincore Metals announced in early May 2012 that First Quantum has acquired a 19.99% interest in Zincore and entered into a staged earn-in agreement whereby First Quantum may acquire up to 80% of Zincore over eight years by achieving specified objectives. Zincore’s primary asset is its Dolores exploration project in the Yauri-Andahuaylas copper district of southern Peru, approximately 40 km from the Haquira deposit, which First Quantum is currently developing. To date, Zincore has published results from 10 drill holes, two trenches, and a number of surface samples at Dolores.
Zincore President and CEO Jorge Benavides said, “The funds that First Quantum will invest in Zincore will allow us to more actively pursue the prefeasibility study for our flagship project, the Accha zinc oxide district. At the same time, funds will be available to explore the Dolores area much more aggressively than we could on our own. This will put us in a good position to deliver significant results for both our copper and zinc projects sooner than we could without the help of our new strategic partner. We are operating in a time of difficult capital markets and a strong strategic partner will be able to help us minimize share issuance dilution while still allowing us to achieve important milestones.”