Fireweed Zinc Announces Drill Program at Boundary Zone and $3.5 Million Private Placement

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VANCOUVER, British Columbia, July 15, 2020 (GLOBE NEWSWIRE) -- FIREWEED ZINC LTD. (“Fireweed” or the “Company”) (TSXV: FWZ) is pleased to announce a non-brokered private placement (the “Offering”) for gross proceeds of up to CAD$3.5 million. 

Fireweed CEO Brandon Macdonald stated, “Last year we drilled the best holes ever at Boundary including 100 metres of 7.94% zinc from surface including 6.4 metres of 42.88% zinc. With this financing we can now drill to further test the high grade and extensions of the zone as we start to outline a potential open pit deposit at Boundary. We will also be exploring and drilling on some new targets seeking new discoveries. Our crews are already in the field finalizing drill sites and we are looking forward to more great results this summer.”

The Offering will consist of three parts for gross proceeds of CAD$3,502,900 as follows:

1. 944,000 common shares of the Company at a price of CAD$0.53 per share (“Common Shares”) with a half two-year warrant exercisable at CAD$0.80 per share;
2. 3,850,000 flow-through common shares of the Company at a price of CAD$0.65 per share (“Flow-Through Shares”); and
3. 658,000 flow-through common shares of the Company at a price of CAD$0.76 per share through a donation arrangement (“Charity Flow-Through Shares”) with a half two-year warrant exercisable at CAD$0.80 per share.

The proceeds from the Offering will be used for exploration and development of the Company’s Macmillan Pass Project in Yukon, Canada, and for general working capital purposes. The gross proceeds from the issuance of all Flow-Through Shares will be used to incur Canadian Exploration Expenses (“CEE”), and will qualify as “flow-through mining expenditures” under the Income Tax Act (Canada), which will be renounced to the purchasers of Flow-Through Shares with an effective date no later than December 31, 2020 in an aggregate amount no less than the proceeds raised from the issue of the Flow-Through Shares.

Closing of the Offering is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange. All securities issued under the Offering will be subject to a statutory hold period of four months plus a day following the date of closing. The Company may pay finder’s fees on a portion of the Offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation.