Funds for exploration, development and to advance Prairie Creek mine
By Melissa Kory
Cleveland, May 26 - Canadian Zinc Corp. announced that it entered into a revised agreement with underwriter Northern Securities Inc. for the private placement of 6.25 million units for C$5 million with a bought-deal commitment by Northern Financial Corp.
The units will be sold at C$0.80 per unit, a 9.09% discount from the May 25 closing price of C$0.88.
Each unit is comprised of one common share and one half-share purchase warrant. Each whole warrant will be exercisable at C$1.05 for 24 months.
The company also granted Northern Securities an over-allotment option to purchase up to an additional C$1 million of the units for 15 days.
This bought-deal financing replaces the unit offering of C$5 million announced on May 11.
The offering is expected to be completed on June 10.
The proceeds will be used for exploration and development, to advance the company's Prairie Creek zinc, lead and silver mine in the northwest territories of Canada toward production and for general corporate and working capital purposes.
Toronto-based Canadian Zinc is a zinc exploration company.
| Issuer: | Canadian Zinc Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$5 million
|
| Greenshoe: | C$1 million
|
| Units: | 6.25 million
|
| Price: | C$0.80
|
| Underwriter: | Northern Securities Inc.
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 24 months
|
| Warrant strike price: | C$1.05
|
| Underwriter: | Northern Securities Inc.
|
| Pricing date: | May 26
|
| Settlement date: | June 10
|
| Stock symbol: | Toronto: CZN
|
| Stock price: | C$0.88 at close May 25
|
| Market capitalization: | C$107.16 million
|
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