Canada Zinc Metals Announces Non-Brokered Private Placement
Vancouver, British Columbia, Canada – May 27, 2010 – Canada Zinc Metals Corp. (TSX Venture Exchange: CZX) is pleased to announce a private placement of 5,000,000 Units at a price of $0.60 per Unit for gross proceeds of up to $3,000,000.
Each Unit will consist of one common share and one-half share purchase warrant of the Company. Each whole warrant will entitle the holder to purchase one additional common share at a price of $0.80 for a period of 18 months from closing.
A finder’s fee of 7% will be paid on the private placement. The private placement is subject to TSX Venture Exchange approval.
The proceeds of the private placement are anticipated to be used for further exploration of the Akie SEDEX zinc-lead deposit and for working capital purposes.
About the Akie and Kechika Regional Properties
The Akie zinc-lead property is situated within the southern-most part (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 variably siliceous, fine grained clastic rocks of the Middle to Late Devonian ‘Gunsteel’ formation. The Company has outlined a NI 43-101 compliant inferred resource of 23.6 million tonnes grading 7.6% zinc, 1.5% lead and 13.0 g/t silver (at a 5% zinc cut off grade).
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 geologic inventory in excess of 50 million tonnes (not 43-101 compliant) grading approximately 10% combined zinc + lead.
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 a historic drill intercept of 8.8 metres grading 9.3% zinc+lead, numerous zinc-lead-barite occurrences, and several regional base metal anomalies.
All of the company’s claims (77,889 Ha), with the exception of a small isolated block (2,293 Ha), are in good standing, under the provisions of the Mineral Tenure Act of British Columbia, until December 8, 2018.
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