Fireweed Zinc Ltd (CVE:FWZ) (OTCMKTS:FWEDF) (FRA:20F) announced the closing of an oversubscribed non-brokered private placement that generated gross proceeds of more than C$4.5 million for exploration and development at its Macmillan Pass project in Yukon, Canada.
The financing, initially announced on June 14, consisted of more than 5 million flow-through common shares at a price of C$0.90 per share.
Specifically, the company said it will incur Canadian Exploration Expenses (CEE), which qualify as “flow-through mining expenditures'' under the country’s Income Tax Act. The expenses are deductible and will be renounced to the purchasers of the flow-through shares with an effective date no later than December 31
READ: Fireweed Zinc set to raise up to C$3.6M in placing to advance Yukon project
Fireweed Zinc has agreed to pay finders fees to arm’s length finders in connection with a portion of the financing, totaling $55,599.85 and 56,669 warrants. All finder’s warrants are exercisable for 12 months from the date of issuance to acquire common shares of the company at an exercise price of $0.90 per share. The company also agreed to issue 20,000 shares to an arm’s length party for corporate finance services.
Fireweed Zinc is advancing its district-scale 940 square kilometres Macmillan Pass project in the Yukon, which is host to the Tom, Jason, Boundary Zone, and End Zone zinc-lead-silver deposits.
Tom and Jason already comprise a combined Indicated resource of 11.21 million tonnes (Mt) of 9.61% zinc equivalent, 6.59% zinc, 2.48% lead, 21.33 g/t silver, with the potential to expand further.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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