Canadian Zinc Corporation (TSX:CZN - News; OTCBB:CZICF - News; the
"Company") is pleased to announce that it has increased the size of
its previously announced $2.0 million private placement to $2.5 million in
Flow-Through Shares (the "Offering") and has closed the Offering.
The Offering consisted of 3,571,429
Flow-Through Shares issued at $0.70 per share. Insiders of the Corporation
subscribed for 200,000 shares for gross proceeds of $140,000, upon which no
commission was paid.
The Offering, led by Northern Securities
Inc. on behalf of a syndicate (collectively, the "Agents"), was
placed with Canadian institutional and private client investors.
The Agents were paid a cash commission
of 7% and were issued broker warrants equal to 10% of the Flow-Through Shares
sold in the Offering. Each broker warrant is exercisable into one common
share at $0.70 for two years from closing.
The securities issued in connection with
the financing are subject to a hold period and may not be traded until April
24, 2011, except as permitted by Canadian securities legislation.
Prairie Creek 2011 Exploration Program
The proceeds from the Offering will be
used for exploration on the Company's Prairie Creek Mine and more
specifically, to continue a deep-hole diamond drill exploration program,
approximately 1.5 kilometres north of the most
northern drill hole that defines the present mineral resource.
A total of 2,700 metres
of drilling was completed in three holes during the summer of 2010 to test
for possible continuation at depth of similar mineralization within the same
geological structure as at the Prairie Creek Mine. The potential vein target,
projected to lie at a down hole depth of
approximately 1,700 metres, remains untested.
The drill rig has been winterized and
remains on location at the drill site and it is planned that the deep hole exploration program will continue in 2011. The
nearest drill hole, PC-95-125 located approximately 1.5 kilometres
to the south towards the Mine, drilled in 1995, returned multiple mineralized
vein intersections 750 metres down the hole,
including a 6.3 metre intercept grading 18.6% zinc,
8.5% lead and 239 grams per tonne silver.
Following the Offering, Canadian Zinc
has 130,448,492 shares issued and outstanding.
About Canadian Zinc
Canadian Zinc's principal focus is to
advance the Prairie Creek Mine, a zinc/lead/silver property located in the
Northwest Territories of Canada, towards production. The Prairie Creek
Property hosts total Measured and Indicated Resources of 5,840,329 tonnes grading 10.71% zinc, 9.90% lead, 0.326% copper,
and 161.12 grams silver per tonne, a large Inferred
Resource of 5,541,576 tonnes grading 13.53% zinc,
11.43% lead, 0.514% copper and 215 grams silver per tonne
and additional exploration potential. (Technical Report October 2007, Minefill Services Inc Dr. David Stone and Stephen Godden,
Qualified Independent Persons, in compliance with NI 43-101).
The Mine is partially developed with an
existing 1,000 tonne per day mill and related
infrastructure. Applications for permits to put the Mine into production are
currently undergoing Environmental Assessment by the Mackenzie Valley
Environmental Impact Review Board. The Company holds a Land Use Permit for
exploration which is valid to September 2012.
Canadian Zinc also holds 628.6 million
shares of Vatukoula Gold Mines plc,
("VGM") representing approximately 15% of VGM's outstanding shares.
Vatukoula Gold Mines plc is a UK company, listed on
the AIM Market of the London Stock Exchange, which currently owns and
operates the Vatukoula Gold Mine located in Fiji.
See: www.vatukoulagoldmines.com.
Qualified Person
Alan Taylor, P.Geo., Chief Operating
Officer, Vice President Exploration and a Director of Canadian Zinc
Corporation, is a Qualified Person for the purposes of National Instrument
43-101 and has approved this press release.
Cautionary Statement - Forward Looking
Information
This press release contains certain
forward-looking information. This forward looking information includes, or
may be based upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the issue of permits, the
size and quality of the company's mineral resources, future trends for the
company, progress in development of mineral properties, future production and
sales volumes of VGM, capital costs, mine production costs, demand and market
outlook for metals, future metal prices and treatment and refining charges,
the timing of exploration, development and mining activities and the
financial results of the company. There can be no assurances that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. The
Company does not currently hold a permit for the operation of the Prairie
Creek Mine. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Inferred mineral resources are considered
too speculative geologically to have economic considerations applied to them
that would enable them to be categorized as mineral reserves. There is no
certainty that mineral resources will be converted into mineral reserves.
Contact:
John F. Kearney
Canadian Zinc Corporation
Chairman
(416) 362-6686
(416) 368-5344 (FAX)
Suite 700 - 220 Bay Street
Toronto, ON M5J 2W4
Alan B. Taylor
Canadian Zinc Corporation
VP Exploration & Chief Operating Officer
(604) 688-2001 or Toll Free: 1-866-688-2001
(604) 688-2043 (FAX)
Suite 1710-650 West Georgia Street
Vancouver, BC V6B 4N9 |