Cdn Zinc raises funds

Vancouver – Canadian Zinc (CZN-T) has increased the company’s capital and issued additional shares in a private placement.

Subsequently, Canadian Zinc’s recent private-placement financing of $6 million was released from escrow.

The company issued just over 6 million units, each of which consisted of one share and half a share purchase warrant. A whole warrant entitles the holder to buy an additional share at $1.25 per share for 18 months from Dec. 22, 2003. Also, 600,000 underwriters were issued units exercisable at $1.25 apiece for a year from the same date.

Canadian Zinc’s shareholders also approved the issue of agents option units. The units consist of 1.4 million agents option shares exercisable at 58 per share for 12 months starting from Nov. 10, 2003, and 705,000 share purchase warrants exercisable at 60 apiece for 18 months from the same date. These units were issued in connection with the company’s earlier, $7-million financing, completed on Nov. 10, 2003.

Canadian Zinc’s authorized capital has been increased to 200 million from 100 million shares. The company has 64 million shares outstanding.

The junior owns the Prairie Creek Mine project in the Northwest Territories. The project includes a nearly completed mine and mill with resources totalling 11.9 million tonnes averaging 12.5% zinc, 10.1% lead, 0.4% copper and 161 grams silver per tonne, or 70 million oz. silver, 3 billion lbs. zinc and 2.2 billion lbs. lead.