CZN buys into Prairie Creek

An agreement with Titan Logix (TLA-V) has allowed Canadian Zinc (CZN-T) to buy Titan’s 2% net smelter return royalty interest in the Prairie Creek mine property in the Northwest Territories.

Prairie Creek is a past producer with a mineral resource base of 11.9 million tonnes grading 12.5% zinc, 10.1% lead, 0.4% copper and 161 grams silver per tonne.

Canadian Zinc bought back the $8.2-million royalty in return for 300,000 of its shares, plus warrants to buy a further 250,000 shares at $1.25 per share within 18 months.

Canadian Zinc Chairman John Kearney says the agreement increases the company’s interest in the plant and equipment at Prairie Creek to 100% from 60%, and eliminates the royalty, which had a face value of $8.2 million.

He adds that the deal advances CZ’s efforts to develop and reopen the mine.