Zincore Metals Inc. reports that it has reached an agreement with First Quantum Minerals Ltd. to terminate the Dolores copper porphyry project joint-venture. Under the terms of the Agreement, Zincore will regain 100% ownership of the Dolores Project, which is located in the prolific Yauri-Andahuaylas Copper District of southern Peru. As consideration for the $8 million investment made by First Quantum in the Dolores Project and related areas, and in full repayment of the $2 million convertible loan between the two companies, Zincore will grant First Quantum a 3.5% net smelter returns royalty on any future production that may occur at the Dolores Project.

Under the terms of the agreement and in consideration for granting the royalty, the two companies have agreed that the $2 million convertible loan, owed by Zincore to First Quantum shall be paid in full, including any applicable interest. In addition, First Quantum will return the 50.1% ownership it holds in the Dolores Project to Zincore, giving Zincore 100% ownership of Dolores. In exchange, Zincore will grant First Quantum a 3.5% net smelter returns royalty on any future production that may occur at the Dolores Project.

Zincore shall have the right to reduce the royalty at any time by 1.5 percentage points to 2.0%, by paying First Quantum $4 million. Specific terms of the Royalty agreement are to be negotiated over the next 90 days.