Nevada Zinc Announces Intention To Enter Into Strategic Partnership To Produce Zinc Oxide

TORONTO, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Nevada Zinc Corporation (“Nevada Zinc" or the "Company") (TSXV: NZN) is pleased to announce that the Company and BelZinc srl (“BelZinc”) have agreed to enter into a strategic partnership based upon terms and conditions set forth in a letter of intent between the parties dated August 9, 2023. Final documentation is expected to be completed shortly. The primary objective of the strategic partnership is to establish Nevada Zinc, utilizing BelZinc’s proprietary production technology, as a Nevada based zinc oxide producer using feedstock from the Company’s Lone Mountain non-sulphide zinc deposit located in close proximity to Eureka, Nevada.

BelZinc, a Belgium based company located outside of Brussels, is the developer and owner of the proprietary processing technology designed to produce high-grade zinc oxide from non-sulphide zinc ore sourced from deposits such as Lone Mountain.

Zinc oxide to be produced by the Company utilizing BelZinc’s proprietary production process will be sold to zinc smelters under contract to assist the smelters in reducing harmful emissions resulting from their smelting operations. Zinc oxide produced by BelZinc from non-suphide zinc ore samples were sent to zinc smelters in Europe and the results of testing by the smelters have been positive.

In exchange for providing Nevada Zinc access to its proprietary zinc oxide production technology and granting the Company a right of first refusal to participate in all future BelZinc projects in North America, BelZinc will receive 12,000,000 common shares of Nevada Zinc, representing an ownership interest of approximately 10.8%. Additionally, BelZinc will receive a fixed licensing fee per tonne of zinc oxide to be produced by Nevada Zinc and a variable licensing fee per tonne of zinc oxide produced designed to track increases in the price of zinc oxide beyond a base level agreed to by the parties.

Mike Wilson, Nevada Zinc’s CEO, commented “We are extremely pleased to be entering into a strategic partnership with BelZinc’s talented and creative management team. The partnership will provide Nevada Zinc with access to BelZinc’s project development and production expertise. The zinc oxide market is significantly larger when compared to the size of the zinc sulphate micro nutrient market which the Company has been focused on since 2021. Nevada Zinc, through its right of first refusal, will have the opportunity to participate in a meaningful way as BelZinc sets out to expand its footprint in North America. The strategic plan of both companies is to work very closely together in order to release a PEA in Q4 of this year and to complete a prefeasibility study in late 2024. As part of the prefeasibility work we plan to begin a definition and exploratory drill program at Lone Mountain in Q1 of 2024.”