Fireweed Zinc Ltd (TSX-V:FWZ) has announced the closing of its non-brokered private placement, first announced November 24, 2021, for total gross proceeds of C$5,178,400, substantially over-subscribed from the initial $3.6 million.
The offering consisted of 6,473,000 flow-through common shares of the company at a price of C$0.80 per share. It will allow Fireweed to secure service contractors including drillers early for the 2022 Macmillan Pass Project (Yukon) work program
In a statement, Fireweed CEO Brandon Macdonald commented: “Thanks to strong investor demand we are able to close this financing on proceeds 45% higher than what we opened on despite challenging market conditions. We felt it was important to raise money early for next season because it is expected that there will again be a shortage of drillers and other service contractors. Having money in the bank now allows us first choice of the best contractors for next year and will allow our highly skilled technical team ample time to plan an effective 2022 exploration program.”
READ: Fireweed Zinc increases size of previously announced non-brokered private placement to $4.9 million due to strong investor interest
The proceeds from the offering will be used for exploration of the company’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.
The company said it will pay finders fees in compliance with the policies of the TSX Venture Exchange and applicable securities legislation, to arm’s length finders in connection with subscriptions from subscribers introduced by them, totaling $103,704 and 129,630 warrants exercisable for 12 months from the date of issuance to acquire Fireweed Zinc common shares at an exercise price of $0.70 per share.
Insiders of the company acquired an aggregate of 22,500 flow-through shares in the offering.
The offering remains subject to the final approval 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.
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