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Tongling Nonferrous Metals Group Holdings Co. Ltd. Subscribes to $18 Million Private Placement
Tongling Nonferrous Metals Group Holdings Co. Ltd. Subscribes to $18 Million Private Placement
About this update from Zincx Resources Corp.
[{"type":"text","content":"\nTongling Nonferrous Metals Group Holdings Co. Ltd. Subscribes to $18 Million Private Placement\n\n\n Jul. 26, 2010 (Filing Services Canada) -- Canada Zinc Metals Corp. (CZX - TSX Venture), is pleased to announce that it has entered into a financing arrangement with Tongling Nonferrous Metals Group Holdings Co. Ltd. (\"Tongling\") pursuant to which Tongling has subscribed, by way of a non-brokered private placement, to 31,386,224 units of Canada Zinc Metals at a price of $0.5735 per unit for gross proceeds of $18,000,000.   Each unit consists of one common share and one half of a common share purchase warrant.  Each whole warrant shall entitle the purchaser to purchase, at any time within 24 months from closing, one additional 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. \"We are extremely pleased to see this level of investment by Tongling,\" stated Mr. Peeyush Varshney, CEO of Canada Zinc Metals.  \"Earlier this year, Tongling retained a leading international mining consulting firm to complete an independent due diligence review of the work we have done on the Akie property to date and, clearly, a very positive report was produced.\" The proceeds of the private placement will be used to fund further exploration and advancement of the Company's Akie zinc-lead property and for working capital and corporate purposes. \"We are pleased to be further increasing our stake in Canada Zinc Metals,\" said 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.  Upon completion of the private placement, Tongling will own approximately a 36% equity position in Canada Zinc Metals.The financing is subject to receiving the necessary approvals of the Tongling board of directors, the relevant Chinese regulatory departments, the TSX Venture Exchange and the shareholders of t...