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CZN-TSX
CZICF-OTCQB
VANCOUVER, Dec. 2, 2016 /CNW/ - Canadian Zinc
Corporation (TSX: CZN; OTCQB: CZICF) ("the Company" or
"Canadian Zinc") announces that it intends to undertake a
non-brokered private placement of 6,666,667 flow-through common
shares (the "FT Shares") of the Company at a price
$0.30 per FT Share (the "FT Share
Price") for aggregate gross proceeds of C$2,000,000 (the "Placement").
The net proceeds of the Placement 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 explore the Company's properties, which include the Prairie
Creek project in the Northwest
Territories as well as the South Tally Pond property in
Newfoundland.
The Company has agreed to pay a Finder's Fee equal to 6% of the
gross proceeds raised in the Placement from purchasers of the FT
Shares introduced to the Company by Secutor Capital Management
Corp., Canaccord Genuity Corp., and Paradigm Capital Inc.
The Placement is subject to the receipt of all necessary
regulatory approvals, including the approval of the Toronto Stock
Exchange (the "TSX"). The FT Shares will be subject to
resale restrictions for a period of four months and one day from
the closing date of the Placement under applicable securities
legislation. The Placement is scheduled to close on or about
December 14, 2016.
The FT Shares will not be registered under the U.S. Securities
Act of 1933 (the "1933 Act"), as amended, or any applicable state
securities laws, and may not be offered or sold to, or for the
account or benefit of, persons in the
United States or "U.S. persons," as such term is defined in
Regulation S regulated under the 1933 Act, absent registration or
an applicable exemption from the registration requirements. This
press release does not constitute an offer of securities for sale
in the United States or to U.S.
persons.
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 that it is exploring for
copper-lead-zinc-silver-gold deposits.
Cautionary Statement – Forward-Looking Information
This press release contains certain forward-looking
information, including, among other things, the expected completion
of acquisitions and the advancement of mineral properties. 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.
Cautionary Note to United States Investors
The United States Securities and Exchange Commission ("SEC")
permits U.S. mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms
in this press release, such as "measured," "indicated," and
"inferred" "resources," which the SEC guidelines prohibit U.S.
registered companies from including in their filings with the
SEC.
SOURCE Canadian Zinc Corporation