Vancouver At an extraordinary general meeting held today, shareholders of Canadian Zinc (CZN-T), approved resolutions to increase the company’s authorized capital and authorized the issue of additional common shares on a private placement basis.
Subsequently, Canadian Zinc’s recent private placement financing of $6 million has been released from escrow. The company issued just over 6 million units, whereby each unit consisted of one common share and one half share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at $1.25 per share for a period of eighteen months from December 22, 2003. The junior also issued 600,000 underwriters units exercisable at $1.25 per unit for a year from the same date.
Canadian Zinc’s shareholders also approved the issue of agents option units, consisting of 1.4 million agents option shares exercisable at $0.58 per share for a twelve month period starting from November 10, 2003 and 705,000 share purchase warrants exercisable at $0.60 per share for eighteen months from the same date. These units were issued in connection with the company’s earlier $7 million financing that was completed on November 10, 2003.
Canadian Zinc’s authorized capital has been increased from 100 million to 200 million common shares. The company currently has 64 million shares outstanding.
The junior explorer holds a 100% interest in the Prairie Creek Mine project in the Northwest Territories. The project includes a near complete mine, mill and surrounding infrastructure with a large mineral resource base totaling 11.9 million tonnes, averaging 12.5% zinc, 10.1% lead, 0.4% copper and 161 grams silver per tonne. The resource contains an estimated 70 million ounces of silver, 3 billion pounds of zinc and 2.2 billion pounds of lead.
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