Canadian Zinc reports Resource Capital provides $20 million financing, DON MacDonald appointed president and to become CEO
15 May 2018
Canadian Zinc Corporation is pleased to announce that it has entered into an equity financing agreement with RCF VI, a wholly owned subsidiary of Resource Capital Fund VI, pursuant to which RCF VI LLC has agreed, subject to shareholder and regulatory approvals, to purchase 100 million shares of Canadian Zinc at $0.20 per share, for gross proceeds of $20 million. As part of the placement, RCF VI LLC will be issued 50 million short-dated warrants, exercisable at $0.25 per share until December 31, 2018, which if exercised in full would generate an additional $12.5 million, or a total potential equity financing of $32.5 million. The use of proceeds of the equity financing will include repayment of the US$10 million bridge loan advanced by RCF VI L.P. in December 2017 and the ongoing development of the Company’s flagship Prairie Creek Zinc-Lead-Silver Project in the Northwest Territories, Canada, including additional engineering and permitting workto improve project confidence, and general working capital.
Canadian Zincalsoannounces that R.J. (Don) MacDonald has been appointed as President of the Company, effective May 16, 2018, and that on approval of the RCF financing by the shareholders, expected to occur at the AGM on June 27, 2018, Mr. MacDonald will also assume the role of CEO. Mr. MacDonald is a CPA, CA, with bachelor and master’s degrees in engineering, and has been involved in the financing, development and/or operation of over 20 mines in North and South America over his career. He served as Chief Financial Officer of Quadra FNX (now KGHM International) from 2010 to 2017 and of NovaGold Resources Inc. from 2003 to 2010. Most recently, Don was Acting President and CEO of KGHM International.