ABBOTSFORD, BC, Nov. 28, 2017 /CNW/ - Nubian Resources Ltd. (the "Company") (TSX VENTURE: NBR) announces that the Company has completed its due diligence on the acquisition of the Esquilache silver-lead-zinc project comprising the historical Esquilache underground lead-zinc mine and adjacent Virgen de Chapi prospect located in the Puno Department of Southern Peru from Zinc One Resources Inc. ("Zinc One"). Under the terms of the letter of intent ("LOI"), announced on September 19th the entry into the definitive purchase agreement was to take place on November 24th, however given the additional time required to complete the due diligence process, Nubian and Zinc One have agreed to extend the entry into the definitive purchase agreement to December 22, 2017.
Nubian has advanced $25,000 thus reducing the cash amount owing on closing from $125,000 to $100,000, which amount will be in addition to the $475,000 in common shares of the Company calculated on the volume weighted average price ("VWAP") for the 60 calendar days preceding the LOI date and four annual advanced Net Smelter Royalty (NSR) payments of $162,500, as outlined in the LOI. The Project is subject to a 2% NSR of which Nubian will have the right to purchase 1% for $500,000 at any time, until the third anniversary of the first sale of gold, silver or concentrate.
Martin Walter, Chief Executive Officer of Nubian stated, "Owning the Esquilache Project in Southern Peru will give Nubian immediate exposure to a near term development opportunity. The Esquilache Project contains silver lead and zinc mineralisation and a number of drill ready targets. Our initial work programs will focus on working towards an initial resource calculation along with updating various past metallurgical and engineering studies."
In other news, after a three month due diligence period on its potential acquisition of the Rio Pampas Project in Central Peru, the Company has decided not to pursue the transaction any further as management concluded the project did not meet its acquisition guidelines at this time.
