Fireweed Zinc Ltd (TSX-V:FWZ) announced that it has closed the first tranche of its previously announced non-brokered private placement.
The tranche consisted of 5,586,444 common shares at a price of CAD$0.70 per share and 7,200,000 flow-through common shares at a price of CAD$0.99 per share for total proceeds of $11,038,511.
Remaining orders will be closed once all necessary subscription agreements and filings are complete, the company said in a statement.
Fireweed announced earlier this week that it had increased the private placement to up to around $12 million after the offering was substantially oversubscribed.
READ: Fireweed Zinc says previously announced private placement has been increased after being substantially oversubscribed due to strong investor interest
The proceeds from the placement will be used for exploration and development of Fireweed Zinc's Macmillan Pass Project in Yukon, Canada, and for general working capital purposes.
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 of flow-through shares 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.
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