Tongling Nonferrous Metals Tongling Nonferrous Metals to inject $18 million into Vancouver junior
Canada Zinc Metals Corp. (TSX: V.CZX, Stock Forum) has lined up $18 million for base metals exploration in northeastern British Columbia after striking a private placement deal with one of China’s largest state-owned copper smelting firms.
The Vancouver company said Tongling Nonferrous Metals Group Holdings Co. Ltd. has agreed to subscribe by way of a non-brokered private placement for 31.4 million units of Canada Zinc at 0.57 cents per unit.
Shares of Canada Zinc rose 1% Tuesday to 48.5 cents.
Proceeds of the private placement will be used to fund further exploration work at the junior’s Akie lead-zinc property where the company has outlined NI 43-101 compliant resource in the Cardiac Creek deposit of 23.6 million tonnes, grading 7.6% zinc, 1.5% lead, and 13 grams silver per tonne.
The company has arrived at that estimate using a 5% zinc cut off grade.
“We are extremely pleased to see this level of investment by Tongling,’’ said Canada Zinc Chief Executive Officer Peeyush Varshney. “We look forward to continuing to build our relationship with the company.’’
Under the private placement, each until consists of one common share and one half of a common share purchase warrant. Each whole warrant can be exchanged for an additional common share of the company at 67.5 cents in the first full year after closing, and 77.5 cents in the second year.