Emerita Enters Into Letter of Intent to Acquire A Zinc Project in Spain - Seite 2

As consideration for the Transaction, subject to and following execution of definitive agreements, Emerita shall pay EUR4.5 million in cash to the Vendor on the following schedule:

• Within 30 days of the parties executing the definitive purchase agreement Emerita shall pay EUR500,000 in cash to the Vendor;
  
  
• On the one year anniversary of executing the definitive purchase agreement Emerita shall pay an additional EUR800,000 in cash to the Vendor; and
  
  
• On the second year anniversary of executing the definitive purchase agreement Emerita shall pay an additional EUR3,200,000 in cash to the Vendor.
  
  

Emerita will also grant to the Vendor a transferable net smelter returns royalty of 2.5% from the Project. The Transaction shall be subject to certain customary closing conditions, including the approval of the TSX Venture Exchange. The Vendor will retain the right to purchase the offtake from future production from the Project under terms customary for such transactions. The Transaction is an arm's length transaction and Emerita is not paying any finder's fees in connection therewith.

Further details regarding the Transaction and the Project will be provided following completion of Emerita's due diligence and the entering into definitive agreements.

Emerita's common shares were halted from trading on March 10, 2017. Following this announcement, it is expected trading will resume on Wednesday, March 22, 2017.

Management Commentary:

David Gower, Chairman of Emerita, commented: "Emerita is thrilled by the opportunity to acquire a zinc project that remains open for future expansion. The Project is located in an area with excellent infrastructure and supportive environment for responsible mine development. Emerita has an exceptional technical team in Spain and a great depth of experience in delineating and developing these types of deposits and is ready to advance the Project quickly."

Joaquin Merino, President and CEO of Emerita, commented: "This is an exceptional opportunity for Emerita. This Transaction would provide the Company with a strong project and growth platform. Emerita also continues to be fully committed to acquiring the Aznalcollar project in Spain following the recent court ruling in the Company's favour and with success there, will have a very strong zinc project portfolio going forward."