Fireweed Zinc Ltd (CVE:FWZ) (OTCMKTS:FWEDF) is set for a $5 million raise, which will see zinc mining titan Teck Resources Ltd (NYSE:TECK) increase its stake in the firm and fund a 2019 work program.
The placing will see more than 2.18 million shares issued at $0.80 each, 890,000 flow-through shares at $0.95 each and over 2.18 million flow-through shares via a donation arrangement at $1.10 each for total gross proceeds of $5,001,750.
READ THE BIG PICTURE: Fireweed Zinc eyeing progress this year after consolidating exciting position at Macmillan Pass
Teck has agreed to buy more than 2.18 million shares, increasing its interest in Fireweed to around 9.9% from 4.7% previously.
"Fireweed is delighted to see Teck grow their stake in the company to just shy of 10%," said CEO Brandon Macdonald. "This is a strong vote of confidence in the project and management from one of the world’s preeminent zinc miners."
The company had made significant progress on Macmillan Pass in 2018 and the new financing will help make 2019 another great year, he added.
The proceeds, the company said, will be used for exploration and development of the firm's Macmillan Pass Project in Yukon, Canada, and for general working capital.
The 544 sq km Macmillan Pass project is host to the 100%-owned Tom and Jason zinc-lead-silver deposits with recently announced mineral resources and a PEA economic study.
In addition, the Boundary Zone and End Zone have significant zinc-lead-silver mineralization drilled but not yet classified as mineral resources.
The project also includes option agreements on large blocks of adjacent claims (MAC, MC, MP, Jerry, BR and NS) which cover exploration targets in the district where previous work identified zinc, lead and silver geochemical anomalies.
Shares in Toronto added 9.30% to stand at $0.94.
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