Zinccorp closes $2.25-million placement at a dime

2010-01-13 16:43 ET - News Release

Mr. Kevin Hull reports

ZINCCORP RESOURCES INC. - PRIVATE PLACEMENT AMENDED & CLOSED

Zinccorp Resources Inc. has amended and closed its private placement, in Stockwatch Dec. 18, 2009, and first amended in Stockwatch Dec. 29, 2009. The total number of units increased from 23 million to 26,566,647 for total proceeds of $2,258,165. Each of the flow-through units consisted of one flow-through common share and one non-flow-through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for two years at the price of 10 cents per share. Each of the non-flow-through units consisted of one non-flow-through common share and one non-flow-through, non-transferable share purchase warrant entitling the holder to purchase one additional common share for five years at a price of 10 cents per share in years one and two; 15 cents per share in year three; and 20 cents per share in years four and five. The units are priced at 8.5 cents per unit. Any shares issued pursuant to the private placement will be subject to a four-month hold period.

In connection with the transactions, cash commissions totalling $138,684 were paid to Research Capital Corp., Limited Market Dealer Inc., PI Financial Corp., Raymond James and Frank Durant. Included in the private placement was the sale of 14,117,647 flow-through units to MineralFields Group.

The proceeds of the private placement will be used for exploration expenditures on the company's Ontario and Yukon mineral properties as well as for general working capital.

Further to the news release in Stockwatch Sept. 23, 2009, the company notes that the options announced are for a term of seven years.