Shares of Vancouver-based Canada Zinc Metals Corp. (TSX: V.CZX, Stock Forum) climbed 9% to 24 cents Monday, as the company announced that it has entered into a financing arrangement with China’s Tongling Nonferrous Metals Group Holdings Co.
Canada Zinc Metals says Tongling, a state-owned holding company, and one of China's largest copper smelting companies has subscribed, by way of a non-brokered private placement, for 11.5 million units of Canada Zinc Metals at 42.5 cents per unit for gross proceeds of $4,887,500. The arrangement is equal to a 13% equity position in Canada Zinc Metals.
"We are extremely pleased to be entering into this financing agreement with Tongling," said Peeyush Varshney, CEO of Canada Zinc Metals, which is the dominant land holder in the Kechika Trough in British Columbia.
"The work that we have been doing on the Akie property has been advancing the value and merit of the Cardiac Creek deposit and continues to attract the interest of the world's premier base metal companies. The Cardiac Creek deposit is one of the most significant discoveries in Canada in the past several years," he added.
The proceeds of the private placement will be used to fund further exploration and advancement of the Canada Zinc Metals’ SEDEX zinc-lead properties and for working capital purposes.
On the company’s Bullboard Monday, Stockhouse member 200baystreet noted: “Awesome news ! We were trading at $0.15 a few days ago. Private placement priced at $0.425. This is one of the largest mining companies out of China![sic]”
