INV Metals Announces Closing of the Quimsacocha Project Acquisition
November 14 2012 - 9:09AM
Marketwired
INV Metals Inc. ("INV Metals" or "Company") (TSX:INV) is pleased to
announce that it has completed its previously announced acquisition
(the "Acquisition") of the Quimsacocha Project in Ecuador (the
"Project") from IAMGOLD Corporation ("IAMGOLD") and is now in
receipt of the funds from the related financing, which raised gross
proceeds of $20 million.
Mr. Robert Bell, CEO of INV Metals, stated, "With the
acquisition of 100% of the Quimsacocha gold project now complete,
INV Metals will aggressively pursue the exploration and development
of this pre-feasibility stage property. Not only does the
Quimsacocha Project immediately transform INV Metals from an
exploration company into a gold development company, it provides us
with tremendous exploration potential to increase the global
resource, discover new gold deposits and grow the Company into a
mid-tier gold producer. Our first efforts will be to update
IAMGOLD's 2008 positive pre-feasibility study over the next six
months while aggressively testing drill ready targets to discover
new gold deposits. INV Metals expects to retain IAMGOLD's
Ecuadorian exploration and management team. The team's addition to
our dedicated and highly focused employees will enable us to 'hit
the road running' and immediately concentrate on advancing the
Project to the production stage while exploring high priority
targets. We look forward to unlocking significant value for the
people of Ecuador and the shareholders of INV Metals."
The Quimsacocha deposit is a high sulphidation epithermal
gold-copper-silver deposit with an Indicated Mineral Resource
estimated at 3.3 million oz Au within 32.6 million tonnes grading
3.2 g/t Au, 22 g/t Ag and 0.20% Cu, and an Inferred Mineral
Resource estimated at 0.2 million oz Au within 2.3 million tonnes
grading 2.2 g/t Au, 27 g/t Ag and 0.22% Cu, both at an NSR cut-off
value of US$22/tonne, equivalent to approximately a 0.4 g/t gold
cut-off. (Please see INV Metals press release dated July 18,
2012).
The deposit is a flat lying, north-south striking, tubular
shaped body which is considered to be amenable to both open pit and
underground mining scenarios. The mineralized zone hosting the
resource has a strike length of approximately 1,600 m north-south
by 120 m to 400 m east-west and up to 60 m thick beginning
approximately 120 m below surface. Typically, high sulphidation
gold deposits like Quimsacocha occur in clusters within a large
alteration system. The property hosts such an alteration zone that
measures approximately 12 by 6 km and contains numerous zones of
untested or underexplored gold targets. In addition, an outcrop
containing fragments of copper mineralized porphyry indicates the
potential for a copper porphyry deposit at depth.
The completion of engineering and other essential studies over
the next few quarters will enable INV Metals to complete a planned
new pre-feasibility study following which the Company intends to
initiate mining exploitation agreement discussions with the
government of Ecuador. The Company's aggressive $15 million
exploration program is aimed at expanding the known resources and
searching for additional gold discoveries, as well as associated
copper porphyry deposits at depth.
The Company's unaudited cash balance is currently $26.3 million,
including the net proceeds from the financing of $18.7 million.
The Acquisition
Pursuant to a share purchase agreement among INV Metals,
IAMGOLD, AGEM Ltd. and Repadre Capital (BVI) Inc., dated June 20,
2012, as amended August 16, 2012 (the "Share Purchase Agreement"),
INV Metals acquired the Quimsacocha Project through the purchase of
all of the shares of IAMGOLD Ecuador S.A. ("Ecuador Subco"), which
was satisfied by the issuance of 221,280,903 common shares of INV
Metals (the "INV Shares"). In addition, on closing the Company
issued 200,000,000 INV Shares to acquire all of the issued and
outstanding shares of 2333914 Ontario Inc. ("FinanceCo"). FinanceCo
completed a financing on September 6, 2012 to raise gross proceeds
of $20 million. Following the completion of these transactions,
IAMGOLD owns approximately 47% of the issued and outstanding common
shares of INV Metals.
The INV Shares have not been registered under the United States
Securities Act of 1933, as amended (the "Act") or the securities
laws of any state and may not be offered or sold absent
registration under the Act or an applicable exemption from the
registration requirements thereof. This news release does not
constitute an offer to sell or a solicitation of an offer to buy,
nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such jurisdiction or an exemption therefrom.
The Mineral Resource estimates were prepared in accordance with
the 2010 CIM Definition Standards for Mineral Resources and Mineral
Reserves as incorporated by reference in National Instrument
43-101. Further information about the Project is contained in the
Technical Report entitled "Technical Report on the Quimsacocha
Project, Azuay Province, Ecuador", dated July 18, 2012 prepared by
Mr. Wayne Valliant, P.Geo, Ms. Katharine Masun, P.Geo, and John T.
Postle, P. Eng of Roscoe Postle Associates Inc. which is available
on SEDAR and on the Company's website.
Mr. Robert Bell, P. Geo, of INV Metals is a "qualified person"
as such term is defined in NI 43-101 and has reviewed and approved
the technical information and data related to the Project included
in this press release.
About INV(TM) Metals
INV(TM) Metals is an international mineral resource company
focused on the exploration and development of the Quimsacocha gold
property in Ecuador. In addition to the Quimsacocha Project,
INV(TM) Metals holds: (1) a 50% interest in the Rio Novo property,
located in Brazil; and (2) a 35% interest in the Kaoko property,
located in Namibia. Please also refer to the INV(TM) Metals'
website at www.invmetals.com to view additional details relating to
the properties.
Forward-Looking Statements
This press release contains certain forward-looking statements.
Forward looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of INV Metals to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include,
among others, risks related to the actual results of exploration
activities, conclusions of economic evaluations, risks associated
with mining and mineral exploration activities, uncertainty in the
estimation of mineral resources, including, without limitation, the
assumptions on which such estimates are based, changes in project
parameters as plans continue to be refined, future prices of
metals, economic and political stability in Ecuador, Namibia,
Brazil and Canada, environmental risks and hazards, increased
infrastructure and/or operating costs, availability of future
financing, labour and employment matters, and government
regulation. There is no guarantee that any drill targets or
economic mineral deposits will be found on INV Metals' properties.
For a more detailed discussion of such risks and other factors,
refer to INV Metals' annual information form filed with Canadian
securities regulators available on www.sedar.com.
Contacts: INV Metals Inc. Candace MacGibbon President and Chief
Financial Officer (416) 703-8416cmacgibbon@invmetals.com INV Metals
Inc. Robert Bell Chief Executive Officer (416)
703-8416rbell@invmetals.com