Hochschild Mining plc ("Hochschild") announces that it has sold its 36.9% holding in Zincore Metals Inc ("Zincore") for a total cash consideration of C$10.3 million.
As a result of the transaction, Hochschild has no further interest in Zincore.
The Company acquired ownership of 38,100,000 common shares of Zincore, a listed mining exploration company with projects in southern Peru,as a result of its purchase of Southwestern Resources Corp in May 2009. Hochschild has disposed of its stake as it does not constitute a core asset for the Company.
Executive Chairman, Eduardo Hochschild purchased Hochschild's 36.9% stake in Zincore at a price of C$0.27 per share representing a 11.6% premium over the 20 day average closing price. The shares were purchased through an investment vehicle, Inversiones Pacasmayo SA, for investment purposes and Eduardo Hochschild may choose to acquire or dispose of Zincore shares in future. Mr Hochschild did not previously own Zincore shares.
The disposal was approved on behalf of the Hochschild board by a committee comprising solely independent Non-Executive Directors ("the Independent Committee"). The Independent Committee has been advised by Canaccord Adams Limited that the terms of the disposal are fair and reasonable as far as shareholders are concerned.
