VANCOUVER, Aug. 21, 2018 /CNW/ - INCA ONE GOLD CORP.
(TSXV: IO) (Frankfurt:
SU9.F) (SSEV: IOCL) ("Inca One" or the
"Company") is pleased to announce that the Company has
finalized the purchase of Anthem United Inc. ("Anthem"),
which owns 90.14% interest in the 350 tonnes per day ("TPD")
Koricancha ore processing facility in Peru ("Koricancha"), from Equinox Gold
Corp. (TSXV: EQX) ("Equinox") and certain minority
shareholders. Please refer to Inca One's press release dated
July 17, 2018 for complete details on
the terms of the acquisition.
Highlights of acquisition for Inca One shareholders include:
- Combined 450 TPD permitted capacity.
- Additional 200-250 TPD of available capacity for future
growth.
- Economies-of-scale opportunities with two plants in nearby
proximity.
- Combined working capital of approx. US$5
million.
- Equinox becomes a new significant shareholder.
The total purchase price for the Koricancha acquisition
("Transaction") was approximately CAD$16.3 million satisfied through the issuance
of an aggregate of 110,050,225 shares at a deemed price of
$0.055 per share, CAD$7.5 million in cash or shares payable over
three years at the Company's option, CAD$1.5
million is payable in cash on the second anniversary of
closing and the balance on the third anniversary, subject to
certain working capital adjustments. The purchase price includes
certain IGV tax credits which will be split between Inca One and
Equinox as collected. In connection with the Transaction, the 3.5%
gold stream currently payable by Koricancha was terminated and, as
a result, future production from Koricancha will not be subject to
any precious metal streams or royalties thereby maximizing revenues
for our shareholders. As a result of the Koricancha acquisition,
both Equinox and SA Targeted Investing Corp. ("SATIC") will
both hold approximately 19.9% of Inca One's issued and outstanding
shares. No finders' fees were paid in relation to the
acquisition.
"The closing of this acquisition of the producing Koricancha
Mill is a strategic and transformative acquisition for Inca One,"
repeated President and CEO, Edward
Kelly. "It instantly increases our footprint in
Peru and allows us to grow our
sales and earnings without significant and time-consuming capital
spending and delays in permitting."
Koricancha is a custom built, fully operational, industrial gold
ore processing facility, featuring a carbon-in-leach gold circuit,
strategically situated in the Arequipa region of Peru. It is
located at sea level, fully serviced by excellent infrastructure
just 10 minutes from the Pan American Highway, within the
Nazca-Ocona gold belt in Southern Peru. It is built out and
permitted for 350 TPD and has been operating at an average of
approximately 135 TPD since January
2018. It has been servicing the small-scale mining sector of
Peru for three years and has a
stockpile of material currently being processed.
Early Warning
In connection with the Transaction, Equinox has acquired
51,269,708 Inca One Shares and SATIC has acquired 51,269,708 Inca
One Shares, each representing 19.99% of the Inca One Shares that
are issued and outstanding upon completion of the Transaction, at a
deemed price of $0.055 per share.
Prior to completion of the Transaction, neither Equinox nor SATIC
owned any Inca One Shares or other securities of Inca One. Equinox
and SATIC are acquiring the Inca One shares for investment purposes
only. Depending upon market and other conditions, or as future
circumstances may dictate, either or both of Equinox and SATIC may,
respectively, from time to time, increase or decrease their
holdings of Inca One Shares or other securities of Inca One.
In connection with the closing of the Transaction, Equinox and
Inca One have entered into a nomination rights agreement pursuant
to which, among other things, so long as Equinox beneficially owns
at least 10% of the outstanding Inca One Shares it will have the
right to nominate one director to Inca One's board and to
participate in certain offerings of securities by Inca One to
maintain its pro rata ownership interest.
This portion of this news release is issued pursuant to National
Instrument 62-103 – The Early Warning System and Related
Take-over Bid and Insider Reporting Issues of the Canadian
Securities Administrators, which also requires an early warning
report to be filed with the applicable securities regulators
containing additional information with respect to the foregoing
matters. A copy of the early warning reports of Equinox and SATIC
will be available on Inca One's issuer profile on SEDAR at
www.sedar.com. Equinox's head office is located at Suite 730, 800
West Pender Street, Vancouver, BC
V6C 2V6 and Equinox can be contacted at 604-558-0560, attention
Pam Kinsman, to obtain a copy of its
early warning report.
About Inca One
Inca One is a Canadian-based mineral processing
company. The Company's activities consist of the production of
gold and silver from the processing of purchased minerals located
in Peru. Peru is the 6th largest producer of gold in
the world and the Peruvian government estimates the small-scale
mining sector accounts for a significant portion of all Peruvian
gold production, estimated to be valued at approximately
US$3 billion annually. The
Company purchases its minerals from government registered
small-scale mining producers from various regions and processes it
at its Chala One milling facility located in Chala, Southern Peru.
On behalf of the Board,
Edward Kelly,
President and CEO
INCA ONE GOLD CORP.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS NEWS RELEASE.
Statements regarding the Company which are not historical facts
are "forward-looking statements" that involve risks and
uncertainties. Such information can generally be identified by the
use of forwarding-looking wording such as "may", "expect",
"estimate", "anticipate", "intend", "believe" and "continue" or the
negative thereof or similar variations and involve statements about
future anticipated revenue, increases in production, cost synergies
and completion of the Purchase Agreement. Since
forward-looking statements address future events and conditions, by
their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ
materially from those currently anticipated in such statements due
to factors such as: (i) fluctuation of mineral prices; (ii) a
change in market conditions; (iii) reduction of supply (iv) plant
shutdowns, (iv) the fact that future operational results may not be
accurately predicted based on this limited information to date and
(v) delays in closing due to regulatory matters. Except as
required by law, the Company does not intend to update any changes
to such statements. Inca One believes the expectations
reflected in those forward-looking statements are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking statements included herein should
not be unduly relied upon.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state.
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SOURCE Inca One Gold Corp.