INV Metals Announces Amendments To Quimsacocha Acquisition
TORONTO, ONTARIO – August 16, 2012 – INV Metals Inc. (“INV Metals” or “Company“) (TSX: INV) is pleased to announce that it has amended the terms of its definitive agreement with IAMGOLD Corporation (“IAMGOLD“) to acquire the Quimsacocha Project in Ecuador (the “Acquisition“).
The Company and IAMGOLD have amended the initial consideration to be paid to IAMGOLD in exchange for all of the shares of IAMGOLD Ecuador S.A., which holds a 100% interest in the Quimsacocha Project, to that number of common shares of INV Metals such that IAMGOLD will hold 45% of the issued and outstanding INV Shares immediately following the completion of the Acquisition.
Closing of the Acquisition remains subject to the completion of an equity offering (the “Equity Financing”) to raise gross proceeds of not less than $20 million and the receipt of shareholder and regulatory approvals, including the approval of the Toronto Stock Exchange. However, the Equity Financing is no longer subject to a minimum offering price.
All other terms of the definitive agreement remain in effect. Further details of the Acquisition as set forth in the Company’s press release of June 21, 2012 and the definitive agreement are available on SEDAR.
The Company has re-scheduled its annual and special meeting from August 15, 2012 to September 14, 2012 to consider the election of directors and the re-approval of its stock option plan, among other matters. The Company will hold another shareholder meeting to consider the Acquisition at a later date in light of the amendments to the definitive agreement.
About INVTM Metals
INVTM Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil and Namibia. Currently, INVTM Metals’ primary assets are: (1) its 50% interest in the Rio Novo property, located in Brazil, and (2) its option to acquire 50% of the Kaoko property, located in Namibia. Please also refer to the INVTM Metals’ website at www.invmetals.com to view additional details relating to the properties.
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, delay or failure to receive regulatory, shareholder or other required approvals to complete the Acquisition, timing and ability to raise capital on acceptable terms, not realizing the potential benefits of the Acquisition, 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.