The Prairie Creek project in the Northwest Territories. (Image: Canadian Zinc)
VANCOUVER – Canadian Zinc Corp. has entered into an equity financing arrangement with a subsidiary of Resource Capital Fund. The fund will purchase 100 million Canadian Zinc shares at $0.20 per share.
The subsidiary will also be issued 50 million warrants that are exercisable at $0.25 per share until Dec. 31, 2018. If the warrants are exercised in full, they will generate another $12.5 million, bringing Resource Capital’s total investment to $32.5 million.
Canadian Zinc will use the proceeds of the financing to repay the $13-million (US10 million) bridge loan advanced by Resource Capital and for the continuing development of the Prairie Creek zinc-lead-silver mine in the Northwest Territories. The company plans additional engineering and permitting work to further de-risk the project.
Details about Prairie Creek are available at www.CanadianZinc.com.