VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 20, 2013) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Canadian Zinc Corporation (CZN.TO)(CZICF) (the "Company" or "Canadian Zinc") is pleased to announce that it has closed its previously announced bought deal private placement of flow-through shares with Canaccord Genuity Corp. ("Canaccord").
The Company issued 6,460,000 common shares, which qualify as "flow-through" shares (the "FT Shares") of the Company for purposes of the Income Tax Act (Canada) (the "Tax Act") at a price of C$0.62 per FT Share, raising aggregate gross proceeds of C$4,005,200 (the "Offering").
The net proceeds of the Offering will be used to incur eligible Canadian Exploration Expenses, as defined under the Tax Act, that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2013.
The funds are intended to be used to explore and advance the Company's projects, which include the Prairie Creek property in the Northwest Territories as well as the South Tally Pond property in Newfoundland.
As compensation, Canaccord received a cash commission of 5% of the gross proceeds raised, and the Company issued to Canaccord 387,600 non-transferrable common share purchase warrants, each of which entitles Canaccord to acquire one non flow-through common share of the Company at a price of $0.63 until February 20, 2015. All securities issued or issuable under the Offering are subject to a four month hold period expiring on December 21, 2013.
Following completion of the private placement, Canadian Zinc has 170,491,781 common shares issued and outstanding.
The FT Shares will not be registered under the U.S. Securities Act of 1933 (the "1933 Act"), as amended, or any applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. persons," as such term is defined in Regulation S regulated under the 1933 Act, absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer of securities for sale in the United States or to U.S. persons.
About Canadian Zinc
Canadian Zinc is a TSX-listed exploration and development company. The Company's key project is the 100%-owned Prairie Creek property, an advanced-staged zinc-lead-silver property, located in the Northwest Territories in Canada.
Canadian Zinc also holds a 100% interest in the South Tally Pond VMS project, along with other property interests in central Newfoundland, where a successful drilling program was carried out in the winter of 2013.
