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Update on Tongling Nonferrous Metals Group Holdings Co. Ltd. $4.9 Million Private Placement
Update on Tongling Nonferrous Metals Group Holdings Co. Ltd. $4.9 Million Private Placement
About this update from Zincx Resources Corp.
[{"type":"text","content":"Update on Tongling Nonferrous Metals Group Holdings Co. Ltd. $4.9 Million Private Placement\n\n\n\nUpdate on Tongling Nonferrous Metals Group Holdings Co. Ltd. $4.9 Million Private Placement\n\nVancouver, British Columbia CANADA, March 23, 2009 /FSC/ - Canada Zinc Metals Corp. (CZX - TSX Venture, MTSZF - OTCBB, AOF7E1 - FWB), is pleased to announce that, further to its news release dated January 26, 2009, it has been advised by Tongling Nonferrous Metals Group Holdings Co. Ltd. (\"Tongling\") that the State-Owned Assets Supervision and Administration Commission of Anhui, China, has approved Tongling's application to invest in Canada Zinc Metals. Tongling will now apply for final approval from the Development and Reform Commission.\n\nCanada Zinc Metals has entered into a financing arrangement with Tongling pursuant to which Tongling will purchase units equal to a 13% equity position in Canada Zinc Metals. Tongling has subscribed, by way of a non-brokered private placement, for 11,500,000 units of Canada Zinc Metals at a price of $0.425 per unit for gross proceeds of $4,887,500. 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 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.\n \n\"We are pleased to be acquiring this initial stake in Canada Zinc Metals,\" said Mr. Li Dongqing, Chief Engineering Officer of Tongling. \"Along with the Akie property, the significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity. We look forward to continuing to build our relationship with the Company.\"\n\nTongling 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.\n \nThe financing is subject to receiving the necessary approvals of the relevant Chinese regulatory departm...