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Canada Zinc Metals Corp Symbol C : CZX Shares Issued 152,244,428 Close 2016-11-23 C$ 0.45 Recent Sedar Documents View Original Document
Canada Zinc arranges $6-million in financings
2016-11-23 16:22 ET - News Release
Mr. Peeyush Varshney reports
CANADA ZINC METALS CORP. ANNOUNCES C$5.0 MILLION BEST EFFORTS FINANCING AND C$1.0 MILLION NON-BROKERED FINANCING
Canada Zinc Metals Corp. has entered into an agreement with a syndicate of agents, led by Cormark Securities Inc. and including Echelon Wealth Partners, pursuant to which the agents have agreed to offer for sale up to 7.5 million units of the company at a price of 40 cents per unit and up to 3.85 million flow-through common shares of the company at a price of 52 cents per flow-through share on a best efforts private placement basis, for aggregate gross proceeds to the company of up to $5.0-million. Each unit shall consist of one common share of the company and one-half of one common share purchase warrant. Each warrant shall be exercisable into one common share at a price of 55 cents for 24 months following the closing of the offering.
The company has also granted the agents an option to sell up to 15 per cent of the number of units and flow-through shares sold pursuant to the offering, exercisable at any time up to 48 hours prior to the closing date.
The net proceeds from the sale of the units will be used to finance the exploration and development of the company's mineral properties in British Columbia, Canada, and for general corporate and working capital purposes. The gross proceeds received by the company from the sale of the flow-through shares will be used to incur Canadian exploration expenses (CEE) that are flow-through mining expenditures (as such terms are defined in the Income Tax Act (Canada)) on the company's properties in British Columbia, which will be renounced to the subscribers with an effective date no later than Dec. 31, 2016, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of flow-through shares.
The offering is scheduled to close on or about Dec. 15, 2016, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities.
The company is also pleased to announce a concurrent non-brokered financing of up to 1.25 million units and 960,000 flow-through shares for aggregate gross proceeds of up to $1.0-million. The units and flow-through shares issuable under the non-brokered offering shall be on the same terms as the offering. A finder's fee may be payable on a portion of the non-brokered offering, in accordance with the policies of the TSX Venture Exchange. The use of proceeds of the non-brokered offering shall be the same as the proceeds as the offering.
The Kechika regional project
The company owns 100 per cent of 11 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.
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