Nevada Zinc Completes Sale of Nevada Mineral Claims

Article content

TORONTO, June 25, 2025 (GLOBE NEWSWIRE) — Nevada Zinc Corporation (“Nevada Zinc” or the “Company”) (TSX-V: NZN) is pleased to announce that, further to the its news release dated July 24, 2024, the Company has completed the sale of its interest (the “Transaction”) in its mineral claims located in Eureka County, Nevada (the “Property”) to Minaurum Gold Corp (“Minaurum”) pursuant to the sale and option agreement dated July 24, 2024 (the “Agreement”), as amended.

Article content

The Property is made up of 203 mineral claims located in Eureka County, Nevada which are comprised of:

Article content

Article content

Article content

      (i)     1 patented claim (the “Patented Claim”) and 26 unpatented lode claims, all of which are 100% legally and beneficially owned by the Company’s wholly owned subsidiary, Lone Mountain Zinc Ltd. (collectively, the “Owned Claims”); and

Article content

Article content

      (ii)      176 unpatented lode claims (the “Leased Claims”) held by the Company through a long-term lease agreement (the “Lease”).

Article content

Pursuant to the terms of the Agreement, the Company granted Minaurum an exclusive option (the “Option”) to acquire: (i) 100% of the Company’s right, title and interest in and to the Owned Claims; and (ii) 100% of the Company’s rights and interests in and to the Lease in respect of the Leased Claims. Minaurum exercised the Option by issuing to the Company 3,846,893 common shares in the capital of Minaurum (the “Consideration Shares”) having an aggregate value of $1,000,000 and paying to the Company a cash fee in the amount of $100,000. The Consideration Shares are subject to: (i) a four-month and one day statutory hold period in accordance with applicable securities laws; and (ii) a contractual restriction on transfer, pursuant to which the Company may not sell more than 500,000 Consideration Shares per week following expiry of the statutory hold period.

Article content

Article content

The grant of the Option was approved by the Company’s shareholders at a special meeting of the Company’s shareholders on February 7, 2025. Further information regarding the Transaction is contained in the information circular of the Company dated December 23, 2024 available under the Company’s SEDAR+ profile at www.sedarplus.ca.

Article content

Following the closing of the Transaction, the Company will not meet the Tier 2 Continued Listing Requirements of the TSX Venture Exchange. Accordingly, the shares of the Company will be transferred to the NEX Board of the Exchange upon closing of the Transaction.

Article content

Secured Loan

Article content

The Company also announces that on June 30, 2023, the Company was advanced a secured loan (the “Loan”) by one of the Company’s directors, Jim Beqaj, in the amount of $173,321.07. The proceeds of the Loan were used to make the annual 2023 rental payment pursuant to the Lease, to pay the Company’s auditors and for exchange listing fees.

Article content

The loan bears interest of 10.0% per annum and had a maturity date of December 31, 2023. Upon the maturity date of the Loan, the Company and the lender entered into a verbal agreement to extend the maturity of the Loan until such time as the Company is in a position to repay the Loan and entered into an amending agreement dated June 13, 2025 formalizing the extension of the maturity date. Pursuant to the Loan, the Company granted the lender a security interest in the Patented Claim, which the lender agreed to relinquish in connection with the Transaction. The TSX Venture Exchange approved the Loan and the extension.