NorZinc Announces Closing of Prospectus Offering and Private Placement for Gross Proceeds of $7.2 Million

6 August 2021

On August 6, NorZinc Ltd. (TSX:NZC; OTCQB:NORZF) announced it has closed its previously announced short form prospectus offering (the “Offering”) and concurrent private placement (the “Concurrent Private Placement”), raising gross proceeds of $7,175,988 through the issuance of 110,399,823 units of the Company (“Units”) at a price of $0.065 per Unit. 95,015,208 Units were issued pursuant to the Offering and 15,384,615 Units were issued pursuant to the Concurrent Private Placement. Each Unit consists of one common share (a “Common Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant is exercisable for a period of three years following the closing of the Offering at a price of $0.09 per Common Share.

The Offering was conducted by a syndicate of agents (the “Agents”), co-led by Paradigm Capital Inc. and Scotia Capital Inc., and including Echelon Wealth Partners Inc. and Eight Capital Corp., on a “best efforts” agency basis. The Company also agreed to grant the Agents an over-allotment option (the “Over-Allotment Option”) to offer for sale an additional number of Units, representing up to 15% of the Offering, exercisable in whole or in part at the Agents’ sole discretion, at any time until the date that is 30 days from and including the closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes.

RCF VI CAD LLC, a wholly-owned subsidiary of Resource Capital Fund VI LP (“RCF”), participated in the Concurrent Private Placement and subscribed for 15,384,615 Units for gross proceeds of approximately $1,000,000. If the Over-Allotment Option is exercised by the Agents, RCF may increase the size of its subscription by the same proportion as the amount of the Over-Allotment Option that is exercised by the Agents. The Prospectus (as herein defined) does not qualify the Units issuable pursuant to the Concurrent Private Placement and the Units issuable pursuant to the Concurrent Private Placement are subject to a statutory hold period. The Agents did not act in connection with the Concurrent Private Placement, and no commission or other fee was paid in respect of the securities issued under the Concurrent Private Placement.

Rohan Hazelton, President and CEO commented: “I am extremely pleased with the strong interest in this financing and the ongoing support shown by RCF. The financing will help position the Company to keep advancing the Prairie Creek Mine and generating value for all stakeholders.”

Read the full release here.

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