Canadian Zinc Corporation (TSX: CZN / OTCQB: CZICF) ("the Company" or "Canadian Zinc") is pleased to announce that it has closed the previous announced non-brokered private placement of flow-through shares.
The Company issued 6,666,664 common shares, which qualify as flow-through shares (the "FT Shares") of the Company for purposes of the Income Tax Act (Canada) at a price of C$0.30 per FT Share, raising 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 Long Lake, Tulks South and South Tally Pond projects in central 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 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. Following completion of the Placement, Canadian Zinc has 266,111,543 common shares issued and outstanding.
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.
Source: Canadian Zinc
