VANCOUVER, British Columbia, Nov. 17, 2017 (GLOBE NEWSWIRE) -- InZinc Mining Ltd. (TSXV:IZN) (the “Company”) is pleased to announce that it intends to complete a non-brokered private placement (the “Financing”) of up to 20,000,000 units (the “Units”) at a price of $0.10 per Unit for aggregate proceeds of up to $2.0 million. Each Unit will consist of one common share (a “Common Share”) of the Company and one-half of one common share purchase warrant (a “Warrant”). Each full Warrant will entitle its holder to acquire one Common Share at an exercise price of $0.15 for a period of 24 months from completion of the Financing.
Red Cloud Klondike Strike Inc. and other parties at arm’s length to the Company (collectively, the “Finders”) will act as the finders in connection with the Financing. The Company will pay the Finder’s a fee of 7% in cash and 7% in Warrants (the “Finder’s Warrants”). Each Finder’s Warrant will entitle the Finder’s to acquire one Common Share at an exercise price of $0.15 for a period of 24 months. The net proceeds from the Financing will be used for advancement of the Company’s exploration projects and for general corporate purposes.
Certain insiders of the Company intend to participate in the Financing. The issuances of Units to insiders of the Company pursuant to the Financing will be considered related party transactions within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company intends to rely on exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation, based on a determination that the fair market value of the participation in the Financing by insiders will not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company expects to file a material change report in respect of the related party transaction less than 21 days prior to the closing of the Financing, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the Financing in an expeditious manner.
Closing of the Financing is expected to occur on or before December 7, 2017 and is subject to all regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued in connection with the Financing will be subject to a four-month hold period from the date of closing in accordance with applicable securities legislation.
The Company intends to complete a portion of the Financing pursuant to Multilateral CSA Notice 45-318 Prospectus Exemption for Certain Distributions through an Investment Dealer (“CSA 45-318”) and the corresponding instruments, orders and rules implementing CSA 45-318 in the participating jurisdictions (collectively with CSA 45-318, the “Investment Dealer Exemption”). In addition to conducting the Financing pursuant to the Investment Dealer Exemption, the Company will also accept subscriptions for Units where other prospectus exemptions are available.
In accordance with the Investment Dealer Exemption, the Company advises that, as at the date hereof, there is no material fact or material change in respect of the Company that has not been generally disclosed. Additionally, the Company advises that there is no minimum number of Units being offered pursuant to the Financing.
About InZinc
InZinc is focused on growth in zinc through exploration and expansion of the advanced stage West Desert project (100%) in Utah and exploration of the early stage Indy project (100% option) in British Columbia. West Desert has a large underground resource open for expansion and has district scale exploration potential. A West Desert preliminary economic assessment completed in 2014 forecasted 1.6 billion pounds of zinc production over 15 years. Indy comprises both near surface exploration targets and regional discovery potential. Both zinc projects are well located with easy access and existing infrastructure.
