Canada Zinc Announces Renewal of Shareholder Rights Plan
Vancouver, British Columbia, Canada – Friday, May 11, 2012 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) announced today that the board of directors of the Company approved the Company’s shareholder rights plan, to become effective, subject to shareholder approval, on May 16, 2012 (the “2012 Shareholder Rights Plan”).
With this approval from the board of directors, in accordance with the terms of the Company’s 2008 Shareholder Rights Plan (the “2008 Shareholder Rights Plan”), the 2012 Shareholder Rights Plan will continue for a further three year term ending in 2015, once such continuance is approved by shareholders. Shareholder approval will be sought at the Company’s annual general meeting to be held on May 16, 2012 at the Suite 2050 – 1055 West Georgia Street, Vancouver, British Columbia.
The 2012 Shareholder Rights Plan is an amended and restated version of the 2008 Shareholder Rights Plan approved by the Company’s shareholders at the Company’s 2008 annual general meeting.
The listing of any rights is subject to acceptance by the TSX Venture Exchange (the “Exchange”).
“The shareholder rights plan is intended to ensure that all shareholders have an equal opportunity to participate in a transaction that could lead to a change in control of the Company,” said Peeyush Varshney, Chief Executive Officer of the Company. “The shareholder rights plan also gives the board of directors of the Company adequate time to assess an unsolicited bid made for the Company and to explore and develop alternatives for maximizing shareholder value.”
As of the date hereof, the Company is not aware of any specific take-over bid for the Company that has been made or is contemplated. The 2012 Shareholder Rights Plan is not intended to and may not prevent a take-over of the Company.
A complete copy of the 2012 Shareholder Rights Plan is available upon request. Shareholders wishing to receive a copy of the shareholder rights plan should make their request by telephone at (604) 684-2181, by facsimile at (604) 682-4768, by email at [email protected] or by mail to Canada Zinc Metals Corp., at Suite 2050 – 1055 West Georgia Street, Vancouver, British Columbia, V6E 3P3. A copy of the 2012 Shareholder Rights Plan will be filed on SEDAR at www.sedar.com upon acceptance by the Exchange.
About the Akie Property
The Akie zinc-lead property is situated within the southernmost area (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead-silver and stratiform barite deposits.
Drilling on the Akie property by Inmet Mining Corporation during the period 1994 to 1996 and by Canada Zinc Metals since 2005 has identified a significant body of baritic-zinc-lead SEDEX mineralization (Cardiac Creek deposit). The deposit is hosted by siliceous, carbonaceous, fine grained clastic rocks of the Middle to Late Devonian Gunsteel Formation.
The Company has outlined a NI 43-101 compliant mineral resource including an indicated resource of 12.7 million tonnes grading 8.4% zinc, 1.7% lead and 13.7 g/t silver (at a 5% zinc cut-off grade) and an inferred resource of 16.3 million tonnes grading 7.4% zinc, 1.3% lead and 11.6 g/t silver (at a 5% zinc cut-off grade). The deposit remains open in all directions.
Two similar deposits, Cirque and Cirque South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Resources and Korea Zinc, are also hosted by Gunsteel rocks and have a combined historic geologic inventory in excess of 50 million tonnes (not 43-101 compliant) grading approximately 10% Zn+Pb.
In addition to the Akie property, Canada Zinc Metals Corp. controls a large contiguous group of claims which comprise the Kechika Regional project. These claims are underlain by geology identical to that on the Akie property (Cardiac Creek deposit) and Cirque. This project includes the 100% owned Mt. Alcock property, which has yielded an historic drill intercept of 8.8 metres grading 9.3% Zn+Pb, numerous zinc-lead-barite occurrences, and several large regional base metal geochemical anomalies.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
CANADA ZINC METALS CORP.
PEEYUSH VARSHNEY, LL.B
CEO & CHAIRMAN