Fireweed Zinc Ltd (TSX-V:FWZ) said that its previously announced financing has been substantially oversubscribed due to strong investor interest, and the non-brokered private placement has been increased to aggregate gross proceeds of up to $12.063 million.
The offering will now consist of up to 7,050,000 common shares of the company at a price of C$0.70 per share and 7,200,000 flow-through common shares of the company at a price of C$0.99 per share for total proceeds of up to $12,063,000.
In a statement, Fireweed CEO Brandon Macdonald commented: "I have been blown away by the demand for this placement. We made the hard choice to cut back some orders with an eye to keeping dilution under control while still improving our treasury. This is a big year for us, and I'm thankful for the runway to execute our plan to carry us through to a game-changing resource update and PEA."
The company said 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.
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The gross proceeds from the issuance of all flow-through shares will be used to incur Canadian Exploration Expenses (CEE) and will qualify as "flow-through mining expenditures" under the Income Tax Act (Canada), which will be renounced to the purchasers with an effective date no later than December 31, 2022, in an aggregate amount no less than the proceeds raised from the issue of the flow-through shares.
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 said it 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 a public mineral exploration company 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