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Fireweed Zinc close oversubscribed, upsized non-brokered private placement raising total gross proceeds of C$5.2 million

The offering, announced on July 15, 2020, will provide Fireweed with capital to fund the 2020 work program primarily focused on drilling in the Boundary Zone at Macmillan Pass but also for the exploration of new target areas

Fireweed Zinc Ltd -
Fireweed CEO Brandon Macdonald commented: “Thanks to impressive investor demand we are able to close this financing on proceeds almost 50% higher than what we opened on"

Fireweed Zinc Ltd. (CVE:FWZ) has announced the closing of an oversubscribed, upsized non-brokered private placement, raising total gross proceeds of C$5.2 million.

The offering, announced on July 15, 2020, will provide Fireweed with capital to fund the 2020 work program primarily focused on drilling in the Boundary Zone at Macmillan Pass but also for the exploration of new target areas.

READ: Fireweed Zinc increases financing to $4.9 million after strong investor interest

In a statement, Fireweed CEO Brandon Macdonald commented: “Thanks to impressive investor demand we are able to close this financing on proceeds almost 50% higher than what we opened on."

“Now, building on last year’s best holes ever at Boundary including 100 metres of 7.94% zinc from surface including 6.4 metres of 42.88% zinc, we can drill to further test the high grade and extensions of the zone as we start to outline a potential open pit deposit at Boundary.

“We will also be exploring and drilling on some new targets seeking new discoveries. Our crews are already in the field finalizing drill sites and we are looking forward to more great results this summer,” he added.

The offering consisted of three parts: 3,154,673 units at a price of CD$0.53 per unit, each unit consisting of one non-flow-through common share and a half two-year warrant exercisable at C$0.80 per share; 3,582,423 flow-through common shares at a price of C$0.65 per share; and 1,630,000 charity flow-through common shares at a price of C$0.76 per share through a donation arrangement with a half two-year warrant exercisable at CD$0.80 per share.

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, 2020 in an aggregate amount no less than the proceeds raised from the issue of the Flow-Through Shares and Charity Flow-Through Shares.

The company 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 $131,691 and 232,386 warrants.

All finder’s warrants are exercisable for 12 months from the date of issuance to acquire common shares of the company at an exercise price of $0.60 per share for the 75,532 warrants issued for the $0.53 Units, $0.65 per share for the 71,054 warrants issued for the $0.65 Flow-Through Shares, and $0.76 per share for the 85,800 issued for the Charity Flow

Through Units. The company also paid 56,604 Units (56,604 shares and 28,302 two-year warrants exercisable at CD$0.80) to an arm’s length party for corporate finance services.

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.

Fireweed Zinc is advancing the district-scale 544 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 option agreements on large blocks of adjacent claims (MAC, MC, MP, Jerry, BR and NS) 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 [email protected]

Quick facts: Fireweed Zinc Ltd

Price: 0.97 CAD

TSX-V:FWZ
Market: TSX-V
Market Cap: $52.19 m
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