NorZinc announces new financing

30 September 2019

NorZinc Ltd. is pleased to announce that RCF VI CAD LLC, an affiliate of Resource Capital Fund VI L.P., has agreed to purchase a 1% net smelter return royalty over the Company’s Prairie Creek zinc-lead-silver mine in the Northwest Territories (the “Mine”) for C$8 million. The issuance of the Royalty will be subject to shareholder approval as required by the Toronto Stock Exchange (“TSX”). It is anticipated that this new non-equity-dilutive royalty will provide funding through the completion of permitting of the Mine. 
Don MacDonald, President & CEO of NorZinc Ltd. stated, “The Royalty financing shows continuing support by our largest shareholder for the Mine, the Company, and its management and it will allow us to continue development of the Mine at full pace. Upon receipt of the All Season Road permit, the Company intends to complete the next stage of financing, allowing the Company to keep to the development schedule outlined in August 2018.”  Mr. MacDonald also said “Although the Mine will primarily produce zinc and lead, it is anticipated to produce significant silver as a by-product. The heightened interest in silver producing assets in recent months has greatly enhanced the importance of silver to the Mine’s revenue and financing opportunities”.