Fireweed Zinc Ltd (CVE:FWZ) (OTCMKTS:FWEDF) has closed its previously announced private placement, raising C$2,064,695 gross to advance its huge Macmillan Pass project in Yukon.
The firm issued over 3.2 million of its shares at C$0.63 each with a half two-year warrant exercisable at C$0.95 per share.
READ: Fireweed Zinc begins drill program at its Macmillan Pass zinc-lead-silver project in Yukon, Canada
"The proceeds from the offering will be used for exploration and development of the Company’s Macmillan Pass Project in Yukon, Canada, and for general working capital purposes," the company said in a brief statement.
Macmillan Pass is a district-scale zinc deposit in Yukon province, Canada. The firm has a land package of more than 544 square kilometres (sq km), which is host to the Tom, Jason, Boundary Zone and End Zone zinc-lead-silver deposits.
Tom and Jason already boast a combined resource of 11.21 million tonnes (Mt) of higher confidence indicated resources at 9.61% zinc equivalent (ZnEq) and 6.59% zinc, 2.48% lead, 21.33 grams per ton (g/t) silver, and there is potential to expand this further.
In 2018, a preliminary economic assessment (PEA) indicated a long mine life of 18 years, and showed a pre-tax net present value (NPV) of C$779mln, using an 8% discount rate, with an internal rate of return (IRR) of 32%. The report demonstrated that Macmillan Pass was not just viable at the zinc, lead and silver prices levels contemplated in the study, but highly robust.
The project also boasts large blocks of adjacent claims (MAC, MC, MP, Jerry, BR, and NS) which cover targets in the district where previous and recent work has identified zinc, lead and silver prospects, and geophysical and geochemical anomalies.
Contact the author at giles@proactiveinvestors.com