Toronto, Ontario--(Newsfile Corp. - May 29, 2017) - Nevada Zinc Corporation (TSXV: NZN) ("Nevada Zinc" or the "Company") is pleased to announce that it has completed its previously announced short form prospectus offering (the "Offering") of units ("Units") for aggregate gross proceeds of $2,200,249.80.
Nevada Zinc intends to use the net proceeds of the Offering for working capital and general corporate purposes, including continuing exploration and development of the Company's Lone Mountain Project in Nevada and its Yukon properties.
The Offering
Pursuant to the Offering, the Company issued an aggregate of 6,286,428 Units at the price of $0.35 per Unit (the "Offered Securities"). The Offered Securities are comprised of units consisting of one common share ("Common Share") of the Company and one-half of one Common Share purchase warrant ("Warrant"). Each whole Warrant is exercisable into one Common Share of the Company at a price of $0.50 per Common Share for a period of 24 months from the closing date of the Offering.
The Offering was led by Canaccord Genuity Corp. (the "Agent") as the sole lead manager and sole bookrunner. The Company granted the Agent an over-allotment option to sell up to an additional 15% of the Offered Securities pursuant to the Offering, exercisable in whole or in part at any time up to 60 days from the closing of the Offering, to cover over-allotments, if any (the "Over-allotment Option"). As of the closing date of the Offering, the Company issued 572,142 Offered Securities pursuant to the exercise of the Over-allotment Option granted to the Agent. The Agent also received a commission equal to 8% of gross proceeds of the Offering. In addition, the Company issued 502,914 non-transferrable options (the "Compensation Options") to the Agent. Each Compensation Option is exercisable for units consisting of one Common Share of the Company and one-half of one Common Share purchase warrant ("Agent Warrant"). Each whole Agent Warrant is exercisable into one Common Share of the Company at a price of $0.50 per Common Share for a period of 24 months from the closing date of the Offering.
Corporate Update
The Company plans to commence drilling operations in Nevada shortly. The main objectives of the next phase of drilling are to continue to expand the known limits of the zones of zinc mineralization and to provide additional assay data within the boundaries of the limits of the mineralization so that comprehensive models can be prepared as part of determining the size, extent and grade of the near surface zinc mineralization. The Company is also undertaking additional mineralogical and metallurgical test work on material from the various zones of mineralization to further determine possible concentration and dissolution properties of the mineralization. All zinc (and lead) mineralization discovered to date is non-sulphide and appears to be amenable to dense media concentration and furthermore appears to be dissolvable in either acid or base solutions. Concentration and dissolution details may prove to be important in any eventual plans to produce products from the mineralization for further processing on site or for materials to be shipped off-site for further processing.
The Company is also planning to carry out additional geological mapping, prospecting and geophysical surveys to aid in new target definition at other locations on the Lone Mountain property beyond the limits of the known mineralization.
Elsewhere, the Company is planning work programs on its VIP, Goodman and Livingstone gold projects in Yukon. The focus on these projects will be the continuing development of solid exploration targets that warrant drill testing. The Company has outlined targets on each of these large projects and the work planned for the upcoming field season will further refine these drill targets as well as hopefully identify new targets worthy of drill testing. Work in Yukon will commence in June.
Bruce Durham P.Geo, President and CEO of Nevada Zinc, is a Qualified Person, as that term is defined by Canadian regulatory guidelines under National Instrument 43-101, and has read and approved the technical information contained in this press release.
U.S. Disclaimer
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Offered Securities, nor shall there be any sale of the Offered Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Offered Securities will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States to, or for the account or benefit of, a U.S. person.
About Nevada Zinc
Nevada Zinc is a discovery driven mineral exploration company with a proven management team focused on identifying unique mineral exploration opportunities that can provide significant value to its shareholders. The Company's existing zinc and gold projects are located in Nevada and Yukon, respectively.
