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CZN-TSX
CZICF-OTCQB
VANCOUVER, June 16, 2016 /CNW/ - Canadian Zinc Corporation
(TSX: CZN; OTCQB: CZICF) (the "Company" or "Canadian Zinc") reports that in connection with its overnight marketed
public offering previously announced on June 15, 2016, it has entered into an underwriting agreement
with a syndicate of underwriters led by Paradigm Capital Inc. and Canaccord Genuity Corp. and including Dundee Securities Ltd.
(collectively, the "Underwriters") to sell 28,000,000 common shares of the Company (the "Common Shares") at a price
of C$0.25 per Common Share (the "Common Share Price") and 4,000,000 flow-through common shares
of the Company (the "Flow-Through Shares") at a price of C$0.25 per Flow-Through Share (the
"Flow-Through Share Price") for aggregate gross proceeds of C$8,000,000 (the
"Offering").
The Company has also granted the Underwriters an over-allotment option to purchase up to 4,800,000 in any combination of Common
Shares and Flow-Through Shares at the Common Share Price and Flow-Through Share Price, exercisable, in whole or in part, at any
time up to 30 days after the closing date of the Offering for additional gross proceeds of up to C$1,200,000.
The net proceeds from the sale of Common Shares will be used to fund definitive feasibility and development programs for the
Prairie Creek Project, exploration programs at both the Prairie Creek Project and the Company's Newfoundland properties as well as for general working capital purposes.
The gross proceeds from the sale of Flow-Through Shares 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, 2016. The
funds are intended to be used to fund exploration programs on the Prairie Creek Project and the Company's Newfoundland properties.
The Offering is scheduled to close on or about July 7, 2016, and is subject to receipt of all
necessary regulatory approvals, including, but not limited to, the approval of the Toronto Stock Exchange (the "TSX"). The
Offering is being made pursuant to a short form prospectus filed in each of the provinces of British
Columbia, Alberta, Saskatchewan, Manitoba, Ontario and New Brunswick. The
Common Shares and Flow-Through Shares sold pursuant to the Offering will not be registered under the U.S. Securities Act of 1933,
as amended, or any state securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from such registration requirements.
About Canadian Zinc
Canadian Zinc is a TSX-listed exploration and development company trading under the symbol "CZN". The Company's key project is
the 100%-owned Prairie Creek Project, a fully permitted, advanced-staged zinc-lead-silver property, located in the Northwest Territories. Canadian Zinc also owns an extensive land package in central Newfoundland.
The Prairie Creek Mine contains a partially developed infrastructure including a 1,000 tonne per day flotation mill, workshops,
accommodations, and support facilities. The Company holds a Type "A" Water Licence which, along with previously issued permits and
licences, permits the operation of a mine at Prairie Creek. A positive updated Preliminary Feasibility Study was completed in
March 2016. The Company also continues the Environmental Assessment process as part of its
application to upgrade the access road into the Prairie Creek Mine for use on an all season basis.
Canadian Zinc also owns an extensive land package in central Newfoundland that it is exploring
for copper-lead-zinc-silver-gold deposits. These include the South Tally Pond project (Lemarchant deposit); Tulks South project
(Boomerang-Domino and Tulks East deposits) and Long Lake project (Long
Lake deposit). The Company's exploration strategy in central Newfoundland is to continue to
build on its existing polymetallic resource base with the aim of developing either a stand-alone mine, similar to the
past-producing mines at Buchans and Duck Pond, or a number of smaller deposits that could be
developed simultaneously and processed in a central milling facility.
Cautionary Statement – Forward-Looking Information:
Certain disclosure in this release, including statements regarding the completion and terms of the proposed Offering and the
use of proceeds therefrom constitute "forward-looking information" within the meaning of Canadian securities legislation. In making
the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes
are reasonable, including that the Company is able to satisfy conditions of the Offering and obtain the required regulatory
approvals of the Offering. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and
other factors that may cause future results to differ materially from those expressed or implied in such forward-looking
statements. Such uncertainties and risks include, among others, inability to satisfy conditions of the Offering and delays in
obtaining or inability to obtain required regulatory approvals. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are
cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any
intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events
or otherwise, except as required by law.
This press release has been reviewed and approved by Alan Taylor, P.Geo., COO & VP
Exploration and director of Canadian Zinc who is a Non-Independent QP under NI 43-101
SOURCE Canadian Zinc Corporation
