Cooks Brook, Nova Scotia, April 3, 2018 – ScoZinc Mining Ltd. (TSX-V: SZM) (“ScoZinc” or the “Company”) is
pleased to announce the execution of a strategic term sheet with MRI Trading AG (“MRI”).
The terms include:
1. Life of mine offtake agreement for lead and zinc concentrates,
2. CAD$14M debt at competitive terms, and
3. CAD$1M as an equity “lead order” for a planned financing.
The debt and equity components provide for over half of the required funds to recommence mining and
milling operation. The offtake agreement provides competitive terms for 333,000 wmt of zinc concentrate
and 133,000 wmt of lead concentrate from the Company’s ScoZinc mine in Nova Scotia. Due diligence has
commenced and is expected to be completed in early May.
Considerable interest was shown in ScoZinc’s high-quality concentrate with numerous competing parties
offering terms for the project’s zinc and lead concentrates. MRI was selected following collaborative
negotiations due to their familiarity and history with the project, their willingness to include an equity
investment in the Company, favorable debt terms and ability to quickly complete the transaction in support
of restarting operations as soon as possible.
ScoZinc CEO Joseph Ringwald stated “We are very pleased with the comprehensive terms provided by MRI
and our ability to finance over half of the required capital to restart operations. With this financing in place,
we will commence a focused marketing campaign to secure the remaining funds to put the mine into
production in 2018.”
The closing of the MRI transaction is conditional upon successful due diligence by MRI and ScoZinc securing
the remainder of restart capex, estimated to be a total of CAD$15M.
About MRI Trading AG
MRI is a leader in trading, metals and minerals, petroleum products, bulk and freight. It specializes in nonferrous
ores, concentrates, refined and precious metals and their related by-products for a global smelting
and processing customer base.
About ScoZinc Mining Ltd.
ScoZinc Mining Ltd. is an established Canadian-based zinc and lead company that owns 100% of the ScoZinc Mine
(ScoZinc Limited) and related facilities near Halifax, Nova Scotia. The project is currently on care and maintenance.
The Company intends to restart operations as soon as possible. The Company has a strong working capital position
and no debt. The Company has 4,216,044 common shares outstanding which are traded on the TSX Venture
Exchange under the symbol “SZM”.
For more information, please contact:
Mr. Joseph Ringwald – President and CEO Telephone: +1 (604) 347-7661 email@example.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this news release.
This news release contains forward-looking information which is not comprised of historical facts. Forwardlooking
information involves risks, uncertainties and other factors that could cause actual events, results,
performance, prospects and opportunities to differ materially from those expressed or implied by such forwardlooking
information. Forward-looking information in this news release includes statements regarding, among
other things, ScoZinc’s objectives, goals and future plans. Factors that could cause actual results to differ
materially from such forward-looking information include, but are not limited to, regulatory approval processes,
changes in general economic conditions and conditions in the financial markets, and changes in demand and
prices for minerals. Although ScoZinc believes that the assumptions used in preparing the forward-looking
information in this news release are reasonable, including that the proceeds from the Offering will be expended
as currently contemplated, undue reliance should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that such events will occur in the disclosed time
frames or at all. ScoZinc disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise, other than as required by
applicable securities laws.