|T.S.E. SYMBOL: CZN
S.E.C. Registration: 0-22216
CANADIAN ZINC TO RAISE AN ADDITIONAL $750,000
|Vancouver, British Columbia, June 02, 2000:
Canadian Zinc Corporation (the "Company") is pleased to announce that it has agreed to a second proposed private placement. Proceeds are earmarked for general working capital and further minesite studies at its 100% owned Prairie Creek Property in the Northwest Territories.
Clubb Capital Limited (the "Agent") of London, England have agreed to broker a private placement of up to 1,500,000 units at a price of $0.50 per unit (the "Financing"). Each unit consists of one share and one share purchase warrant exercisable at $0.55 for a period of one year from closing of the Financing. Subscriptions will only be available to investors outside of North America. In connection with the Financing the Company will pay the Agent, a commission of 8.0% of the gross proceeds of the Financing plus Agent's warrants equivalent to 10% of the number of units placed in the Financing exercisable at $0.55 per share for a period of two years following the closing of the Financing. The Financing is subject to regulatory approval and completion of final documentation. A closing date of on or before June 30, 2000 is anticipated.
This Financing is in addition to the private placement announced April 25, 2000. The two financings, which in the aggregate are expected to raise gross proceeds of $1.5 million, will enable the Company to pursue a dual approach by funding a promising exploration campaign together with the further development of the potential at the existing minesite. The geological resource at the Prairie Creek property is calculated at 11.8 million tonnes grading 12.5% zinc, 10.1% lead and 161 grams of silver per tonne.
On behalf of the Board of Directors
|Malcolm Swallow, President & CEO||(CANADA):||(604) 688-2001|