Fireweed Zinc Ltd (TSX-V:FWZ) said that under its previously announced non-brokered private placement it will issue a second and final tranche consisting of 2,885,715 common shares at a price of C$0.70 per share and 100,000 flow-through (FT) common shares at a price of C$0.99 per share for aggregate proceeds of $2,119,000.
The company said these remaining orders will be closed once filings are approved to allow a subscriber to exceed 10% ownership of the company. This is expected to take at least another week, possibly longer, however, all subscription paperwork is in and the order book is closed.
It noted that the modest upsize over the last announcement was done to accommodate a few existing shareholders. The total offering, including both tranches, will be 8,472,159 common shares and 7,300,000 FT shares for total proceeds of $13,157,511.
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.
READ: Fireweed Zinc closes first tranche of private placement, raising $11M
The gross proceeds from the issuance of all FT 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 FT 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 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