Canada Zinc Metals Closes Non-Brokered Private Placement
Vancouver, British Columbia (FSCwire) - Canada Zinc Metals Corp. (“Canada Zinc Metals” or “the Company”, TSX Venture Exchange: CZX) is pleased to announce that it has completed a non-brokered private placement of units of the Company (the “Private Placement”) for gross proceeds of $458,800 through the sale of 1,310,857 Units (each a “Unit”) at $0.35 per Unit. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one transferable common share purchase warrant (each whole such warrant a "Warrant"), with each Warrant entitling the holder thereof to acquire one additional Common Share at a price of $0.50 until April 12, 2019.
In connection with closing of the Private Placement, the Company paid finders’ fees of $24,525 and issued 70,071 non-transferable finders’ warrants to certain finders in accordance with applicable securities laws and the policies of the Exchange. Each finder’s warrant is exercisable to acquire one common share of the Company at a price of $0.45 until April 12, 2019.
The net proceeds from the Private Placement will be used for general working capital and the exploration and development activities on the Akie property.
All securities issued will be subject to a four-month and one day hold period, expiring August 13, 2017. This transaction remains subject to receipt of final approval of the TSX Venture Exchange.
The Kechika Regional Project
The Company owns 100% of eleven, large, contiguous property blocks that comprise the Akie and Kechika Regional projects. The Company’s flagship Akie Project is host to the Cardiac Creek deposit and remains the primary corporate focus. The Kechika Regional Project includes the Pie, Yuen, Cirque East and Mt. Alcock properties extending northwest from the Akie property for approximately 140 kilometres along the strike of the highly prospective Gunsteel Formation shale; the main host rock for known SEDEX zinc-lead-silver deposits in the Kechika Trough of northeastern British Columbia. These projects are located approximately 260 kilometres north northwest of the town of Mackenzie, British Columbia, Canada. The generative portfolio of Kechika Regional properties offer shareholders and interested exploration companies high potential opportunities for new discoveries in the Kechika Trough.
Pie Option Agreement
The Pie, Yuen and Cirque East properties are the subject of an option agreement concluded on September 9, 2013 with Teck and its JV partner, Korea Zinc Co., Ltd. ("Korea Zinc" KRX:KorZinc 010130). Under the terms of the option agreement, Teck and Korea Zinc can acquire up to a 70% interest in the Pie, Yuen and Cirque East properties for $8.5 million of cumulative exploration expenditures.
Teck has incurred $3.0 million of exploration expenditures to the end of 2016 on the Pie Option Properties using an integrated approach to exploration to decrease risk and maximize the potential for discovery. In accordance with the Option Agreement Teck and Korea Zinc must spend an additional $0.5 million by the end of 2017 to exercise the “First Option” and earn an undivided 51% interest in the Pie Option Properties.
Upon exercising the First Option, Teck and Korea Zinc would have an additional option (the "Second Option") to acquire a further 19% interest in the properties for a total interest of 70%, by incurring an additional $5.0 million in exploration expenditures on or before December 31, 2019.
The Company’s flagship Akie property is situated within the Kechika Trough, the southernmost area of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead-silver SEDEX mineralisation known as the Cardiac Creek deposit. The deposit is hosted by siliceous, carbonaceous, fine grained clastic rocks of the middle to late Devonian Gunsteel Formation.
The Company has outlined a NI 43-101 compliant mineral resource at Cardiac Creek, including an indicated resource of 19.6 million tonnes grading 8.2% zinc, 1.6% lead and 13.6 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 8.1 million tonnes grading 6.8% zinc, 1.1% lead and 11.2 g/t silver (at a 5% zinc cut-off grade).
Ken MacDonald P.Geo., Vice President of Exploration, is the designated Qualified Person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN
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Source: Canada Zinc Metals Corp. (TSX Venture:CZX)
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