INV Metals Announces Closing of the Quimsacocha Project Acquisition
TORONTO, ONTARIO – November 14, 2012 – 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.
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 INVTM Metals
INVTM 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, INVTM 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 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, 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.