ENP Newswire - 28 July 2014
Release date- 25072014 - Vancouver, British Columbia - Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) is pleased to announce it has filed a final prospectus in connection with the previously announced $15 million bought deal public offering and that a receipt has been issued by the British Columbia Securities Commission.
As announced on July 9, 2014, the Company has entered into an agreement with Dundee Securities Ltd., on behalf of a syndicate of underwriters including Canaccord Genuity and Paradigm Capital (together, the 'Underwriters'), to purchase on a 'bought deal' basis by way of short form prospectus, 13,160,000 flow-through common shares of the Company ('Flow Through Shares') and 28,572,000 units of the Company ('Units') subject to all required regulatory approvals at a price per Flow-Through Share of $0.38 for gross proceeds of $5,000,800 and at a price per Unit of $0.35 for gross proceeds of $10,000,200 (the 'Offering').
Each Unit shall consist of one common share of the Company ('Share') and one-half of one common share purchase warrant ('Warrant'). Each whole Warrant shall entitle the holder thereof to acquire one Share at a price of $0.50 for a period of 36 months following the Closing Date.
The Offering is scheduled to close on or about July 31, 2014 (the 'Closing Date'). Closing of the Offering is subject to a number of conditions, including, without limitation, receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. The Underwriters have been granted an option to purchase up to an additional 15% of the Offering, exercisable in whole or in part at any time up to 30 days following the Closing Date.
About Canadian Zinc
Canadian Zinc is a TSX-listed exploration and development company trading under the symbol 'CZN'. The Company's key project is the 100%-owned Prairie Creek Project, a fully permitted, advanced-staged zinc-lead-silver property, located in the Northwest Territories.
The Prairie Creek Project contains a Mineral Reserve of 5.2 million tonnes averaging 9.4% zinc, 9.5% lead and 151 g/t silver. In addition, Prairie Creek hosts an Inferred Resource of 6.2 million tonnes averaging 14.5% zinc, 11.5% lead, 0.57% copper and 229 g/t silver.
A Preliminary Feasibility Study was completed by SNC-Lavalin in July 2012. Prairie Creek is an underground operation that will utilize multiple mining methods to access readily available ore. Canadian Zinc has the majority of infrastructure in place including a 1,000 tonne per day mill, five kilometres of underground workings and related equipment, a heavy duty and light duty surface fleet, three exploration diamond drills and a 1,000 m airstrip.
Canadian Zinc also owns an extensive land package in central Newfoundland that it is exploring for Cu-Pb-Zn-Ag-Au deposits. Key projects include the South Tally Pond project (Lemarchant deposit), the Tulks South project (Boomerang-Domino deposit) and Long Lake project (Long Lake deposit). The Company's strategy is to continue build the zinc-copper-lead-silver-gold resources base with the aim of developing the deposits capable of processing through a central milling facility.
John F. Kearney
Tel: (416) 362-6686
Alan B. Taylor
Tel: (604) 688-2001
Tel: (416) 203-1418
This press release contains certain forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws, including, among other things, the expected completion of acquisitions and the advancement of mineral properties and the timing for closing of the offering.
This forward looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the completion of transactions, the issue of permits, the size and quality of mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the company.
There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.
There is no certainty that mineral resources will be converted into mineral reserves. Any forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company other than as required by applicable securities laws.