NEW YORK, March 1, 2013 /PRNewswire/ -- Zinco do Brasil Inc. (OTCQB: ZNBR) (the "Company") is pleased to announce that it has retained EAS Advisors LLC ("EAS"), a financial advisory firm specialized in consulting and financing public companies in the commodity and mining space.
EAS will provide the Company with a variety of equity capital market and consulting services, and will assist the Company in developing its mining industry presence through its vast network, presentations and general corporate issues including future capital raises and debt financing.
Edward A. Sugar, Principal of EAS Advisors, stated: "We are very pleased and excited to be the Company's consultant and look forward to assisting the Company in executing its business plan. We look forward to working with Zinco do Brasil, Inc. and its management team on a long-term basis and believe the Company is in an excellent position to capitalize on the enormous opportunities in Zinc market."
About EAS Advisors LLC:
EAS Advisors, LLC is a boutique investment advisory firm that provides a unique service to companies operating in the natural resource and commodity sectors. The foundation of EAS' business is built on knowledge, capital markets insight and access to a deep pool of both traditional and non-traditional sources of capital. EAS' range of services include: equity and debt sourcing, management recruitment, IPOs & secondary offerings, financial markets advisory, mergers acquisitions, corporate structuring and start-up/seed funding.
About Zinco do Brasil, Inc.
Zinco do Brasil, Inc. ("Zinco") is a publicly listed company (Ticker: ZNBR). The Company acquired 99.9% of Zinco do Brasil Mineracao Ltda., which owns 30 mineral rights for a total of 44,665 hectares in the Brazilian state of Minas Gerais. The mineral rights are split between two projects: "Salobro", which consists of 2 mining rights for an area of 1,685 hectares, and "Gorutuba" with 28 mining rights for an area of 42,980 hectares. The Company expects the Salobro reserves to increase by 30 – 50% during the exploration drillings scheduled for Q2 and Q3 of 2013 to prove up reserves to 43-101 standard. The Salobro project is expected to go into production in Q1 of 2016 and to produce in excess of 30,000 metric tons of Zinc and 5,000 metric tons of Lead per year during the mine-life of 10 years (13 - 15 years after reserve increase of 30 - 50%), with an IRR of 24 - 71% and a payback of 1.4 to 3.5 years from commencement of operation.
The Gorutuba project consists of 28 mining rights containing an area of 42,980 hectares in total. Geophysical interpretation of the area was developed based on data gained from airborne geophysical survey conducted by the State of Minas Gerais. The study revealed that the geophysical characteristics of the Salobro deposit are highly correlated with seven targets within the Gorutuba project area, showing similar anomalies like Salobro. The extent of the seven selected targets is 17 km (compared to 2.35km of Salobro) and a drill program is scheduled to start during 2013 to confirm each deposit. Initial geochemical studies indicated other anomalies of Copper and Gold within the Gorutuba projects/targets.
Certain statements in this news release are forward-looking statements. Words such as "expects", "intends", "plans", "proposes", "may", "could", "should", "anticipates", "estimates", "likely", "possible", "potential", "believes" and words of similar import may identify forward-looking statements. Such statements are based on management's and the Company's independent mining consultant's current expectations, estimates and projections about the companies' businesses, are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors beyond the control of either of the companies, including, but not limited to, the successful completion of the merger; the combined company's ability to raise the required additional capital to develop its mining assets and to identify other acquisition and/or joint venture opportunities in the mining sector, and to establish the technical and managerial infrastructure necessary to take advantage of, and successfully participate in, such opportunities; future economic conditions; demand for manganese and other minerals the company may seek to extract; political stability; and changes in governmental regulations, and financial capabilities of the Company. Additional information on risks and other factors that may affect the business and financial results of Zinco do Brasil and the combined company can be found in filings of Zinco do Brasil with the U.S. Securities and Exchange Commission. The Company encourages any current or potential shareholder to read all the public filings before making a decision to invest in the shares of any public company.
Zinco do Brasil Inc.
100 Park Avenue
New York, NY 10017 USA
T: +1 (212) 984-0628
F: +1 (212) 880-6499
SOURCE Zinco do Brasil Inc.