Canadian Zinc seeks financing

To fund further exploration on its wholly owned Prairie Creek base metal property in the Northwest Territories, junior Canadian Zinc (CZM-T) has entered into a $720,000 private placement.

The financing consists of up to 1.8 million flow through shares priced at 42 per share. Yorkton Securities has agreed to broker the placement in return for a commission of 8% of the gross proceeds plus warrants equivalent to 10% of the shares issued during the financing. The warrants are exercisable at 42 for the first year and 48 during the second year.

The proceeds will be used to explore the company’s high-grade zinc deposit at Prairie Creek. Situated 500 km west of Yellowknife, the Prairie Creek property comprises 7,802 ha and is about 27 km long.

The Zone 3 deposit contains 11.8 million tonnes averaging 12.5% zinc and 10.1% lead, plus 161 grams silver per tonne. The mineralization has a strike length of 2.1 km and remains open.