December 14, 2021
NorZinc Ltd. (TSX:NZC, Not Rated, Timothy Lee) announced that it had closed a $3.3M private placement with its major shareholder, RCF VI CAD LLC. (Private, Not Rated). With this placement, RCF has acquired an additional ~5.14% (~68.5M) shares priced at $0.048363/sh, bringing its total shareholding to 48.59% (~366M of common shares) of NorZinc’s shares outstanding including, or 49.11% (~373.5M shares) on a partially diluted basis assuming the exercise of RCF’s ~7.7M warrants. The proceeds of the placement are expected to fund a winter road at NorZinc’s 100%-owned Zn-Pb-Ag Prairie Creek project in the Northwestern Territories, which would later be upgraded to an all-season road during the project construction. The first phase of roadbuilding would allow the collection of additional geotechnical data that would likely facilitate the subsequent roadbuilding campaign, in addition to transporting the heavy equipment required to commence early on-site construction projects. We view the private placement as a positive step for the company, as it demonstrates the backing of its major shareholder and provides funding for an important step in the development of the Prairie Creek project. The company plans to initiate an updated feasibility study in December following initial feasibility level work completed over the past month. We highlight that the company released an updated PEA earlier in October, which led to a 99% increase in the NPV of Prairie Creek (read more), and we believe the updated FS could be another important step toward building a mine at Prairie Creek. Read more
