Canadian Zinc announces C$4 million bought deal flow-through private placementCNW Group (Thu 8:55AM EDT) VANCOUVER , Aug. 1, 2013 /CNW/ - Canadian Zinc Corporation (TSX: CZN; OTCQB: CZICF) (the "Company" or "Canadian Zinc") is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. ("Canaccord"), pursuant to which Canaccord has agreed to purchase as underwriter for resale 6,460,000 flow-through common shares (the "FT Shares") of the Company at a price of C$0.62 per FT Share (the "FT Share Price") through a private placement for aggregate gross proceeds of C$4,005,200 (the "Offering").
The net proceeds of the Offering will be used to incur eligible Canadian Exploration Expenses and flow-through mining expenditures, as defined under the Income Tax Act ( Canada ), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2013 . The funds are intended to be used to explore and advance the Company's projects, which include the Prairie Creek Mine in the Northwest Territories as well as the South Tally Pond property in Newfoundland.
The FT Shares will be offered by way of the "accredited investor" and "minimum amount" exemptions under National Instrument 45-106 in British Columbia, Alberta and Ontario (the "Canadian Selling Jurisdictions").
The Offering is subject to the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange (the "TSX"). The FT Shares will be subject to resale restrictions for a period of four months and one day from the closing date of the Offering under applicable securities legislation.
The Offering is scheduled to close on or about August 20, 2013 , or such other date as may be agreed with Canaccord.
The FT Shares will not be registered under the U.S. Securities Act of 1933 (the "1933 Act"), as amended, or any applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. persons," as such term is defined in Regulation S regulated under the 1933 Act, absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer of securities for sale in the United States or to U.S. persons.