Blue Zen Heads to Arizona for Copper Investmentadmin
Blue Zen Heads to Arizona for Copper Investment
Signs Purchase Agreement to Acquire an Interest in Mineral Exploration Property
Montreal, Quebec CANADA, February 13, 2014 /FSC/ – Blue Zen Memorial Parks Inc. (BZM – CSE),(“Blue Zen” or “the Company” or “BZM”) today announced that it has signed a Purchase Agreement (“Agreement”) with Anfield Resources Inc. (“Vendor” or “Anfield”) a company incorporated in British Columbia, Canada with respect to acquiring an interest (“Percentage Interest”), subject to the due diligence as set out in the Agreement, in the Binghampton Copper Queen Property (“Property”), located in Arizona, the leading copper-producing state in the United States. Blue Zen and Anfield have agreed to a joint development (the “Project”) of the Property. This pending transaction is consistent with the Company’s continued efforts to acquire and integrate select copper mining properties and related businesses within the Americas and internationally, in partnership with its principal shareholder Jiangsu Tiandilong Land Resource Technology Co. Ltd. (“TDL”).
TDL is a leading copper rod production company with 20 operational entities, annual sales in excess of $1.83 billion, land reserves of 9.3 million square meters, and worldwide interests in mineral exploration and development. Currently, TDL is building the Lianyungang Copper Processing project, an 800,000 ton copper smelting facility in Jiangsu Province, China.
Under the terms of the Agreement, BZM will have first right of refusal for the Off-Take Agreement, providing the Company an option to purchase 100% of production of the mine over the life of the mine, with a selling price of the copper-equivalent ore or concentrate based on a 10% discount to the London Metal Exchange (“LME”) copper-equivalent price. Securing the Off-Take Agreement will support TDL’s vertical integration strategy and its goals to secure long-term resource supply and distribution, control inputs and manage costs.
The Company intends to purchase up to 50% of the Property from the Vendor, subject to the results of a NI 43-101 copper-equivalent resource estimate for the Property. The purchase will occur in two “Phases.” Under Phase 1, and according to the terms of the Agreement, BZM’s actual percentage of ownership of the Property shall be determined as follows:
(a) 50% if the NI 43-101 copper-equivalent resource estimate results are less than 2 billion pounds of copper-equivalent; or
(b) 20% if the NI 43-101 copper-equivalent resource estimate results are equal to or greater than 2 billion pounds of copper-equivalent.
As consideration for the Percentage Interest under Phase 1, the Company shall pay $2 million in lawful money of Canada (“Phase 1 Investment”) into a newly established Joint Account (“Joint Account.”) Representatives from both the Company and Vendor will comprise a Budgeting Committee to oversee and administrate the Joint Account and all operational requirements including the foregoing elements of the transaction, exclusive of the management fee to the Vendor. The Phase I Investment will be at the closing of the transaction (“Operative Date”), which is projected to occur in late April or mid-May following completion of due diligence, and will be inclusive of management fees to be paid to Vendor for their overall management of the Project. Under Phase 1, a qualified firm will be engaged by the Company and Vendor to create the NI 43-101 within 15 months of the Operative Date.
Under Phase 2 and according to the terms of the Agreement, if the NI 43-101 copper-equivalent resource estimate results are equal to or greater than 2 billion pounds of copper-equivalent, the Company has the option to purchase a further 30% Percentage Interest in the Property (“Phase 2 Investment”) within 60 days of the release of the resource estimate. The purchase price for this additional Percentage Interest is based on a price of $1 million for each 10% increment of Percentage Interest. The Phase 2 Investment will be paid into the Joint Account and will be inclusive of Vendor management fees as well as fees related to the management of a Preliminary Economic Assessment. The joint Budget Committee will determine and oversee the budgeting and administration of both the Phase I and Phase II Investments.
TDL’s founder and CEO, Jiaping Jiang, together with major BZM shareholder Albert Barbusci, will be working together to raise the necessary investment capital. It is anticipated that funding for the $2 million Phase 1 Investment will be through private placements at a price of $0.10 per share for a total issuance of 20 million new BZM common shares, and that both related parties and arms-length investors will participate in the proposed private placement. Should the Company exercise its option to acquire an additional Percentage Interest under Phase 2, the manner and pricing for any funding requirement that may arise will be determined at that time.
About Binghampton Copper Queen Property
The Binghampton Copper Queen (BCQ) property is a volcanogenic massive sulfide (“VMS”) project covering 7.8 square miles and consisting of patented and unpatented claims and state lands. It lies in the western Arizona Volcanogenic Massive Sulfide Belt (“VMS Belt”) about 17 miles southeast of Prescott, Arizona.
The Arizona VMS Belt contains 70 known deposits including 48 past and present producers. According to the Arizona Geological Survey, combined production is 55.8 million tons grading 3.6% copper, 0.2% lead and 0.9% zinc. Four of the deposits produced in excess of 1 million tons with the largest, the United Verde of Jerome, producing 33.5 million tons at 4.36% copper.
Elevation of the Property is considered ideal ranging from 1,220 meters at the bottom of the creek valley to 1,450 meters at the peak. The Property is very close to fuel and equipment supplies and its infrastructure is considered excellent as compared to other copper producing regions around the world.
About Anfield Resources Inc.
Anfield Resources Inc., formerly known as Equinox Exploration Corp., is a publicly traded corporation listed on the TSX-Venture Exchange (TSX VENTURE: ARY.V) and is engaged in mineral exploration and development in the United States and Chile. The major focus is on copper exploration properties in the southwest United States where management has extensive experience and a proven track record of discovery. Further information about Anfield Resources can be found at www.equinoxexploration.com.
About Blue Zen
Blue Zen Memorial Parks Inc., a publicly traded corporation listed on the Canadian Securities Exchange (CSE:BZM), recently expanded its strategic focus to include mining development and mineral exploration, with the ultimate aim of acquiring and integrating mining assets. The Company currently has 36,401,420 issued and outstanding common shares.
Safe Harbor Statement
This news release contains statements that constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Blue Zen Memorial Parks Inc. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Blue Zen will derive therefrom. Forward-looking information is based on the estimates and opinions of Blue Zen’s management at the time the information is released and Blue Zen does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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Source: Blue Zen Memorial Parks Inc. (CNSX: BZM)
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Posted: February 13th, 2014 under FSCWIRE.