Zinc One Resources Inc. on Feb. 1 said it agreed to purchase a zinc portfolio by taking over Forrester Metals Inc. in a bid to become a producer.

The company intends to make the high-grade zinc Bongara and Charlotte Bongara properties in Peru its flagship project.

Under the binding agreement, each Forrester shareholder will receive 1 common share of Zinc One for every 5.5 common shares held.

As part of the deal, Forrester can issue up to 27,040,000 shares at 12.5 Canadian cents per share to settle debt of about C$3.4 million.

The transaction is expected to close in the second quarter.

To fund exploration on the Bongara and Charlotte Bongara properties, Zinc One intends to raise C$10.0 million via a nonbrokered private placement of 16,666,667 units at 60 cents apiece.

Each unit will consist of 1 share and half of a purchase warrant, with each whole warrant exercisable for another share at 90 cents apiece within 24 months.

Recently, the company undertook a 1.5-for-1 forward stock split and received acceptance from the TSX Venture Exchange to acquire a 100% interest in the Scotia zinc property in British Columbia from Aldever Resources Inc. as part of its zinc-focused strategy.