CZN-TSX
CZICF-OTCQB
VANCOUVER, June 29, 2016 /CNW/ - Canadian Zinc
Corporation (TSX: CZN; OTCQB: CZICF) (the "Company" or
"Canadian Zinc") is pleased to report that it has filed a
final short form prospectus (the "Prospectus") in each of
the provinces of British Columbia,
Alberta, Saskatchewan, Manitoba, Ontario and New
Brunswick, and obtained a receipt from the British Columbia
Securities Commission.
The Prospectus qualifies the distribution of 32,000,000 common
shares of the Company (the "Common Shares") at a price of
C$0.25 per Common Share and 4,000,000
flow-through common shares of the Company (the "Flow-Through
Shares") at a price of C$0.25 per
Flow-Through Share, for aggregate gross proceeds of C$9,000,000 (the "Offering"). The Company
has entered into an amended and restated underwriting agreement
with Paradigm Capital Inc., Canaccord Genuity Corp. and Dundee
Securities Ltd. (collectively, the "Underwriters") to
reflect an increase in the size of its previously announced public
offering from C$8,000,000 to
C$9,000,000.
As previously announced, the Company has granted the
Underwriters an over-allotment option to purchase up to 4,800,000
common shares in any combination of Common Shares and Flow-Through
Shares for C$0.25 per share,
exercisable, in whole or in part, at any time up to 30 days after
the closing date of the Offering for additional gross proceeds of
up to C$1,200,000.
The net proceeds from the sale of Common Shares will be used to
fund feasibility and development programs for the Prairie Creek
Project, exploration programs at both the Prairie Creek Project and
the Company's Newfoundland
properties, as well as for general working capital purposes.
The gross proceeds from the sale of Flow-Through Shares will be
used to incur eligible Canadian Exploration Expenses and
flow-through mining expenditures, as defined under the Income
Tax Act (Canada), that will be
renounced in favour of the purchasers with an effective date of no
later than December 31, 2016. The
funds are intended to be used to fund exploration programs on the
Prairie Creek Project and the Company's Newfoundland properties.
The Offering is scheduled to close on or about July 7, 2016.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. The Common Shares and Flow-Through Shares sold
pursuant to the Offering will not be registered under the U.S.
Securities Act of 1933, as amended, or any state securities laws
and may not be offered or sold in the
United States absent registration or an applicable exemption
from such registration requirements.
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. Canadian
Zinc also owns an extensive land package in central Newfoundland.
The Prairie Creek Mine contains a partially developed
infrastructure including a 1,000 tonne per day flotation mill,
workshops, accommodations, and support facilities. The Company
holds a Type "A" Water Licence which, along with previously issued
permits and licences, permits the operation of a mine at Prairie
Creek. A positive updated Preliminary Feasibility Study was
completed in March 2016. The Company
also continues the Environmental Assessment process as part of its
application to upgrade the access road into the Prairie Creek Mine
for use on an all season basis.
Canadian Zinc also owns an extensive land package in central
Newfoundland that it is exploring
for copper-lead-zinc-silver-gold deposits. These include the South
Tally Pond project (Lemarchant deposit); Tulks South project
(Boomerang-Domino and Tulks East deposits) and Long Lake project (Long
Lake deposit).
Cautionary Statement – Forward-Looking
Information:
Certain disclosure in this release, including statements
regarding the completion and terms of the proposed Offering and the
use of proceeds therefrom constitute "forward-looking information"
within the meaning of Canadian securities legislation. In making
the forward-looking statements in this release, the Company has
applied certain factors and assumptions that the Company believes
are reasonable, including that the Company is able to satisfy
conditions of the Offering and obtain the required regulatory
approvals of the Offering. However, the forward-looking statements
in this release are subject to numerous risks, uncertainties and
other factors that may cause future results to differ materially
from those expressed or implied in such forward-looking statements.
Such uncertainties and risks include, among others, inability to
satisfy conditions of the Offering and delays in obtaining or
inability to obtain required regulatory approvals. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Readers are cautioned not to place
undue reliance on forward-looking statements. The Company does not
intend, and expressly disclaims any intention or obligation to,
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by law.
SOURCE Canadian Zinc Corporation