Burnaby, British Columbia--(Newsfile Corp. - December 7, 2017) - Silcom Systems Inc. (the Company or "Silcom") a reporting issuer in British Columbia, is pleased to announce the execution of an Option Agreement (the "Agreement") between the Company, Pasinex Resources Limited (CSE: PSE) (FSE: PNX) ("Pasinex"), through its wholly-owned subsidiary Pasinex Resources Nevada Limited, and Cypress Development Corp. (TSXV: CYP) ("Cypress"), The Agreement provides Pasinex the right to acquire 100% of Silcom's right to earn-in on the Gunman Zinc Project under its March 23, 2017 Option Agreement (the "Option") with Cypress.
In return for providing Pasinex with the right to aquire the Company's interest, Pasinex provides Silcom with US$100,000 and two million common shares of Pasinex upon signing followed by an additional US$100,000 and two million common shares of Pasinex on or before September 11, 2018. Pasinex will also assume all obligations under the Option with Cypress. Upon completion of the second installment of cash and shares, Pasinex will have acquired 100% of Silcom's right under the Option to acquire an 80% interest from Cypress in the Gunman zinc project.
President and CEO of Silcom Bill Willoughby said: "Silcom is pleased to have executed the agreement with Pasinex and Cypress. The agreement enhances Silcom's position to move forward in becoming a listed company and allows us to evaluate other resource projects for acquisition. It also gives the Company an interest in Gunman through an equity position in Pasinex, who we are pleased to have as a partner. Pasinex is a zinc producer with cash flow from its operations in Turkey and the potential to grow into a mid-tier zinc company."
On Behalf of the Board
William Willoughby, President & CEO
Silcom Systems Inc.
137 Ranelagh Ave, Burnaby, BC, Canada, V5B 3N2