Underwriters exercise over-allotment option in
full
CZN-TSX
CZICF-OTCQB
VANCOUVER,
July 7, 2016 /CNW/ -
Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) (the
"Company" or "Canadian Zinc") is pleased to report
that it has closed its previously announced underwritten
public offering of common shares and flow-through shares (the
"Offering") through a syndicate of underwriters co-led by
Paradigm Capital Inc. and Canaccord Genuity Corp. and including
Dundee Securities Ltd. (collectively, the "Underwriters")
and that the Underwriters have exercised their over-allotment
option in full.
The Company issued 34,135,000 common shares (the "Common
Shares") at a price of $0.25 per
Common Share (which includes 2,135,000 Common Shares issued
pursuant to the over-allotment option) for gross proceeds of
$8,533,750 and 6,665,000 flow-through
shares (the "Flow-Through Shares") at a price of
$0.25 per Flow-Through Share (which
includes 2,665,000 Flow-Through Shares issued pursuant to the
over-allotment option) for gross proceeds of $1,666,250.
In total, the gross proceeds of the Offering amount to
$10,200,000.
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.
Following completion of the Offering, Canadian Zinc has
258,847,709 common shares issued and outstanding.
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 use of proceeds of the Offering 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. 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. 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