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Canada Zinc Metals Announces Closing of $4.9 Million Private Placement Subscribed to by Tongling Nonferrous Metals Group Holdings Co. Ltd.
Canada Zinc Metals Announces Closing of $4.9 Million Private Placement Subscribed to by Tongling ...
About this update from Teck Resources Limited Class A
[{"type":"text","content":"\nCanada Zinc Metals Announces Closing of $4.9 Million Private Placement Subscribed to by Tongling Nonferrous Metals Group Holdings Co. Ltd.\n\n\n Jun. 1, 2009 (Filing Services Canada) -- Canada Zinc Metals Corp. (CZX - TSX Venture, MTSZF - OTCBB, AOF7E1 - FWB), (\"Canada Zinc Metals\" or the \"Company\") is pleased to announce that, further to its news releases dated January 26, 2009 and March 23, 2009, it has received final approvals from the TSX Venture Exchange and the relevant Chinese authorities with respect to the closing of the non-brokered private placement subscribed to by Tongling Nonferrous Metals Group Holdings Co. Ltd. (\"Tongling\").Pursuant to the private placement, Tongling has purchased 11,500,000 units of the Company at a price of $0.425 per unit for gross proceeds of $4,887,500 and now holds a 13% equity position in Canada Zinc Metals. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant entitles Tongling to purchase, at any time within 24 months from closing, one common share of the Company at a price of $0.60 during the first year and at a price of $0.80 during the second year. These units are subject to a hold period expiring on September 27, 2009. \"We welcome Tongling as a strategic shareholder of Canada Zinc Metals,\" stated Mr. Peeyush Varshney, CEO of Canada Zinc Metals. \"Our Company continues to attract the interest of the world's premier base metal mining companies. The Cardiac Creek deposit is one of the most significant discoveries in Canada in the past several years.\" The proceeds of the private placement will be used to fund further exploration and advancement of the Company's SEDEX zinc-lead properties and for working capital purposes.\"Along with the Akie property, Canada Zinc Metals' significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity,\" commented Mr. Li Dongqing, Chief Engineering Officer of Tongling. \"We look forward to continuing to build our relationship with the Company.\"Tongling Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui, is a state-owned holding company, and one of China's largest copper smelting companies. Tongling's principal activities are exploration, mining, ore processing, smelting & refining and products processing of copper,...