ZincOx Sells Interest in Yemeni Project

ZincOx Resources plc has entered into an agreement for the sale of its entire issued share capital of ZincOx Resources (Yemen) Ltd., which holds a 52 percent interest in Jabal Salab Co. (Yemen) Ltd., to its joint venture partner, Ansan Wikfs.

Jabal Salab has the right to exploit the Jabali deposit in Yemen, which contains both silver and zinc. The consideration for the sale comprises a series of deferred payments to be made from cash generated from the Jabali deposit once it has been developed, with a nominal payment of $1 made by Ansan at the official signing, acknowledging that the value will be in the project once developed.

The structure is similar to one that ZincOx employed when it sold its interest in the Shaimerden zinc deposit in Kazakhstan in 2003.

In a release, Andrew Woollett, ZincOx’s chairman, says, “Due to the realignment of our corporate strategy towards recycling, our interest in primary natural resources has diminished and it is right therefore that our JV partner takes over the management and development of this exciting project. With their very strong connections in the Middle East generally and Yemen in particular we believe they are best placed to pursue the financing of the project.”