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Canada Zinc Metals Announces Closing of $18 Million Private Placement
Canada Zinc Metals Announces Closing of $18 Million Private Placement
About this update from Zincx Resources Corp.
[{"type":"text","content":"\nCanada Zinc Metals Announces Closing of $18 Million Private Placement\n\n\n Nov. 18, 2010 (Filing Services Canada) -- Canada Zinc Metals Corp. (CZX - TSX Venture), (\"Canada Zinc Metals\" or the \"Company\") is pleased to announce that, further to its news releases dated July 26, 2010 and October 26, 2010, 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 31,386,224 units of the Company at a price of $0.5735 per unit for gross proceeds of $18,000,000 and now holds a 36.5% 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 $0.675 during the first year and at a price of $0.775 during the second year.  These units are subject to a hold period expiring on March 17, 2011. The proceeds of the private placement will be used primarily to fund further exploration and advancement of the Company's Akie zinc-lead property. \"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, Vice-President and Chief Engineer 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, lead, zinc, gold, silver and other non-ferrous and rare metals.  Given the nature and size of the strategic investment, the Company has agreed to permit Tongling to appoint up to two nominees as members of the board of directors of Canada Zinc Metals for so long as Tongling maintains an interest of at least 20% of the outstanding common shares of the Company.Subject to certain con...