Fireweed Zinc Ltd (TSX-V:FWZ) has announced the closing of the second and final tranche of its non-brokered private placement first announced on March 17, 2022, which in total raised $13.1 million, being substantially over-subscribed from an initial $9.7 million opening.
The company said the offering will provide it with capital to expand the 2022 work program on the Macmillan Pass Project, Yukon, Canada, and deliver upcoming resource updates and a Preliminary Economic Assessment without further capital raises.
The second tranche consisted of 2,885,715 common shares at a price of C$0.70 per share and 100,000 flow-through common shares at a price of C$0.99 per share for gross proceeds of $2,119,000.
In total, the financing comprised two tranches totaling 8,472,159 common shares at a price of C$0.70 per share and 7,300,000 flow-through shares at a price of C$0.99 per share for total gross proceeds of C$13,157,511.
READ: Fireweed Zinc acquires Gayna River project in Canada’s Northwest Territories
In a statement, Fireweed Zinc CEO Brandon Macdonald commented: "We are grateful that in these turbulent times we have supportive shareholders that allow us to raise capital on shareholder-friendly terms. It is a testament to the quality of our Macmillan Pass Project and the capability of the Fireweed team that not only did support for this financing never waiver but also that we were able to significantly upsize.
"Now with nearly $20M in the bank we set ourselves to the task of executing our biggest ever drill program and demonstrating exactly how unmatched Macmillan Pass is among undeveloped zinc assets," he added.
The company noted that Teck Resources Limited's participation in the offering will increase their interest in Fireweed Zinc from 4.9% to approximately 8.7%
Meanwhile, Ibaera's participation in the offering will increase their interest in the company from 8.3% to approximately 10.7%, it added. In accordance with rights granted to Ibaera Capital in connection with the private placement, Ibaera Capital intends to nominate one person for appointment to the board of directors of Fireweed.
The company also noted that a third investor, a high-net-worth individual, invested an additional $3.5 million. Insiders of the company acquired an aggregate of 115,000 common shares in the offering.
The offering remains subject to final approval of the TSX Venture Exchange and all securities issued will be subject to a statutory hold period of four months plus a day following the date of closing.
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 $108,840, and 153,000 warrants exercisable for 12 months from the date of issuance to acquire common shares of the company at an exercise price of $0.70 per share.
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 has two projects located in northern Canada: Fireweed owns 100% of the district-scale 940 square kilometre Macmillan Pass project in Yukon, Canada, which is host to the Tom and Jason zinc-lead-silver deposits with current Mineral Resources and a PEA economic study as well as the Boundary Zone, Boundary Zone West, 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 with known showings and significant upside exploration potential.
Fireweed also owns 100% of the 128.75 square kilometre Gayna River project located 180 kilometres north of the Macmillan Pass project. It is host to extensive critical minerals mineralization including zinc, gallium and germanium as well as lead and silver, outlined by 28,000 metres of historic drilling and significant upside potential.
Contact the author at jon.hopkins@proactiveinvestors.com