|T.S.E. SYMBOL: CZN|
S.E.C. Registration: 0-22216
SECOND FINANCING CLOSED, WORK ON SCOPING STUDY UNDERWAY
|Vancouver, British Columbia, July 20, 2000:
Canadian Zinc Corporation (the "Company") is pleased to report that Clubb Capital Ltd. of London, England has closed the private placement initially announced on June 2nd, 2000. The offering of 1,500,000 units at $0.50 per unit was fully subscribed to raise $750,000. Each Unit consists of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional share of the Company at $0.55 per share for a period of one year. Clubb Capital Ltd. received 75,000 Units and 150,000 Broker's Warrants exercisable at $0.55 for two years. The Company is now adequately funded for the immediate future having raised $1.5 million over the last 6 weeks to fund ongoing exploration and development activities on the Company's Prairie Creek copper, lead, zinc, silver property in the Northwest Territories.
An independent evaluation of elements of the proposed scoping study has commenced with a review of the extensive metallurgical studies on the property to date. This will lead to a program of additional test work to examine the metallurgical response of mixed vein and stratiform (SEDEX) mineralisation. Additionally a review of mechanical and electrical systems and equipment in the existing mill, constructed in 1982 but never operated, is currently underway. The study will also cover transportation, mining costs, environmental and financial considerations and is expected to be completed by January 2001. Management is of the opinion that sufficient resources are in place to facilitate an informed decision as to the size and nature of a future mining and milling operation on the site.
At the Prairie Creek Mine site, work for this season commenced on May 15th, 2000. On site, activities include equipment repair, refurbishment of infrastructure and general site clean up, while off site work will include commencement of permitting discussions with the appropriate authorities for eventual start up of the operation based on the outcome of the scoping study.
Work continues on a helicopter supported regional reconnaissance program as part of the exploration program for the year 2000. This initial program will further evaluate the Gate claim discovery (News Release October 21, 1999) as well as evaluate known mineral occurrences surrounding the Company's 28,000-acre leased and staked lands in the Northwest Territories.
Subject to regulatory and shareholder approval, the Company has amended the 1997 Stock Option Plan (the "Plan") whereby an additional 2,000,000 common shares have been reserved, set aside and made available for issue under and in accordance with the Plan. The Plan was originally implemented and approved by shareholders at the Annual General Meeting held on May 22, 1997. Any stock options granted pursuant to the amended Plan will not be exercisable until regulatory and disinterested shareholder approvals have been received. The next Annual General Meeting is scheduled for May 2001.
On behalf of the Board of Directors
|Malcolm Swallow, President & CEO||(CANADA):||(604) 688-2001|