Fireweed Zinc Ltd (TSX-V:FWZ) said that its previously announced financing has been oversubscribed due to strong investor interest, and the non-brokered private placement has been increased to aggregate gross proceeds of up to $4.9 million.
The company said the offering will now consist of up to 6,125,000 flow-through common shares at a price of C$0.80 per share.
The proceeds from the offering will be used for exploration and development of Fireweed Zinc’s Macmillan Pass Project in Yukon, Canada; and specifically will be used to incur Canadian Exploration Expenses (CEE) that qualify as “flow-through mining expenditures” under the Income Tax Act (Canada), all of which will be renounced to investors.
READ: Fireweed Zinc shares begin trading on the OTCQB in the US
Closing of the offering is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange.
All securities issued under the offering will be subject to a statutory hold period of four months plus a day following the date of closing.
The company may pay finder’s fees on a portion of the offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation.
Fireweed Zinc is focused on zinc-lead-silver and managed by a veteran team of mining industry professionals. The company is advancing its district-scale 940 square kilometre Macmillan Pass Project in Yukon, Canada, which is host to the 100% owned Tom and Jason zinc-lead-silver deposits with current Mineral Resources and a PEA economic study as well as the Boundary Zone, Tom North Zone and End Zone which have significant zinc-lead-silver mineralization drilled but not yet classified as mineral resources.
The project also includes large blocks of adjacent claims (MAC, MC, MP, Jerry, BR, NS, Oro, Sol, Ben, and Stump) which cover exploration targets in the district where previous and recent work identified zinc, lead and silver prospects, and geophysical and geochemical anomalies in prospective host geology.
Contact the author at jon.hopkins@proactiveinvestors.com