Fireweed Zinc Ltd (CVE:FWZ) (OTCMKTS:FWEDF) (FRA:20F) has announced that it is planning to raise C$5 million via a private placement equity financing at $0.80 per share, which is fully-subscribed for by a strategic investor.
The company said proceeds from the offering will be used for general working capital purposes, cash reserves for future development, and exploration and development of its Macmillan Pass Project in Yukon.
“Fireweed welcomes a new strategic institutional investor who has subscribed for the entirety of the Financing,” Fireweed CEO Brandon Macdonald said in a statement.
READ: Fireweed Zinc sitting on a massive resource in Yukon with plans to unlock further value
“These funds are an important first step as we build toward our ambitious 2021 plans and we are encouraged that the Financing has been placed to a group who has conducted extensive due diligence and supports our long term strategy for the Macmillan Pass Project,” Macdonald added.
The issued shares are subject to a statutory hold period of four months plus a day following the date of closing and the company noted that no finder’s fees will be paid as part of the financing.
Fireweed Zinc is building a district-scale zinc deposit in Canada's Yukon Territory. The company boasts a huge land package of over 544 square kilometres (sq km) at its flagship Macmillan Pass property, which is host to the Tom, Jason, Boundary Zone, and End Zone zinc-lead-silver deposits.
Tom and Jason already comprise a combined 11.21 million tonnes (Mt) of higher confidence Indicated resources at 9.61% zinc equivalent (ZnEq) consisting of 6.59% zinc, 2.48% lead, 21.33 grams per tonne (g/t) silver.
The Boundary zone, Tom North zone, and End zone have significant zinc-lead-silver mineralization drilled but are not yet classified as mineral resources. Notably, an existing camp, road access, and a government airstrip are already in place.
Contact Sean at sean@proactiveinvestors.com