Fireweed Zinc Closes $4.5 Million Private Placement
July 02 2021 - 8:30AM
FIREWEED ZINC LTD. (“
Fireweed” or the
“
Company”) (TSXV: FWZ) is pleased to announce
closing of its non-brokered private placement (the
“
Financing”) announced June 14, 2021 for
gross proceeds of CAD$4,503,427 consisting of 5,003,808
flow-through common shares of the Company (“Flow-Through Shares”)
at a price of CAD$0.90 per share. The Financing was over-subscribed
due to increased demand.
The proceeds from the Financing will be used for
exploration and development of the Company’s Macmillan Pass Project
in Yukon, Canada. Specifically, the Company will incur Canadian
Exploration Expenses (“CEE”), which will qualify
as “flow-through mining expenditures” under the Income Tax Act
(Canada), and which will be renounced to the purchasers of
Flow-Through Shares with an effective date no later than December
31, 2021. The Company has agreed to pay finders fees to arm’s
length finders in connection with a portion of the Financing,
totaling $55,599.85 and 56,669 warrants. All finder’s warrants are
exercisable for 12 months from the date of issuance to acquire
common shares of the Company at an exercise price of $0.90 per
share. The Company has also agreed to issue 20,000 shares to an
arm’s length party for corporate finance services.
Insiders of the Company subscribed for an
aggregate of 102,055 shares in the Financing, which participation
constituted a "related party transaction" as defined under
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions (“MI 61-101”). Such participation
is exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101 as neither the fair market value
of the securities acquired by the insiders, nor the consideration
for the securities paid by such insiders, exceed 25% of the
Company's market capitalization. As required by MI 61-101, the
Company advises that it expects to file a material change report
relating to the Financing less than 21 days before completion of
the Financing, as the nature of the related party transaction is
relatively immaterial, and was not necessary to complete the
Financing, and can generally be considered reasonable in the
circumstances.
Final closing of the Financing remains subject
to acceptance by the TSX Venture Exchange. All securities issued
under the Financing will be subject to a statutory hold period of
four months plus a day following the date of closing.
About Fireweed Zinc Ltd. (TSXV:
FWZ): Fireweed Zinc is a public mineral exploration
company focused on zinc-lead-silver and managed by a veteran team
of mining industry professionals. The Company is advancing its
district-scale 940 km2 Macmillan Pass Project in Yukon, Canada,
which is host to the 100% owned Tom and Jason zinc-lead-silver
deposits with current Mineral Resources and a PEA economic study
(see Fireweed news releases dated January 10, 2018, and May 23,
2018, respectively, and reports filed on www.sedar.com for
details) as well as the Boundary Zone, Tom North Zone and End Zone
which have significant zinc-lead-silver mineralization drilled but
not yet classified as mineral resources. The project also includes
large blocks of adjacent claims (MAC, MC, MP, Jerry, BR, NS, Oro,
Sol, Ben, and Stump) which cover exploration targets in the
district where previous and recent work identified zinc, lead and
silver prospects, and geophysical and geochemical anomalies in
prospective host geology.
Additional information about Fireweed Zinc and
its Macmillan Pass Zinc Project including maps and drill sections
can be found on the Company’s website at
www.FireweedZinc.com and at www.sedar.com.
ON BEHALF OF FIREWEED ZINC
LTD.
“Brandon Macdonald”
CEO & Director
ContactBrandon MacDonaldPhone:
(604) 646-8361
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Statements
Financing Disclosure StatementsThis news release
does not constitute an offer to sell or a solicitation of an offer
to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or
any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Forward Looking StatementsThis news release may
contain “forward-looking” statements and information relating to
the Company, the Financing, and the Macmillan Pass Project that are
based on the beliefs of Company management, as well as assumptions
made by and information currently available to Company management.
The Company does not undertake to update forward‐looking statements
or forward‐looking information, except as required by law.
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