Canada Zinc Metals Corp. announced this morning that it has received final approvals from the TSX Venture Exchange and relevant Chinese authorities concerning the closing of the non-brokered private placement subscribed to by Tongling Nonferrous Metals Group Holdings Co. Ltd.
Tongling has purchased 11,500,000 units of Canada Zinc Metals at a price of $0.425 per unit for gross proceeds of $4,887,500 and now holds a 13% equity position in the company. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant entitles Tongling to purchase one common share of the Company at a price of $0.60 during the first year and at a price of $0.80 during the second year. Canada Zinc Metals plans to use the proceeds to fund further exploration and advancement of the Company’s SEDEX zinc-lead properties as well as for working capital purposes.
“We welcome Tongling as a strategic shareholder of Canada Zinc Metals,” commented Mr. Peeyush Varshney, CEO of Canada Zinc Metals. “Our Company continues to attract the interest of the world’s premier base metal mining companies. The Cardiac Creek deposit is one of the most significant discoveries in Canada in the past several years.”
“Along with the Akie property, Canada Zinc Metals’ significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity,” stated Mr. Li Dongqing, Chief Engineering Officer of Tongling. “We look forward to continuing to build our relationship with the Company.”