Fireweed Zinc Closes $5.2 Million Private Placement

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VANCOUVER, British Columbia, Aug. 06, 2020 (GLOBE NEWSWIRE) -- FIREWEED ZINC LTD. (“Fireweed” or the “Company”) (TSXV: FWZ) is pleased to announce closing of the non-brokered private placement (the “Offering”) announced July 15, 2020 for total gross proceeds of CAD$5.2 million. 

Highlights

• $5.2 million Offering over-subscribed
• Insiders, namely Directors, Management, and their proxies, participated for a total of 521,697 Units plus 76,961 Flow Through Shares in the financing to add to their holdings
• Financing will provide Fireweed with capital to fund the 2020 work program primarily focused on drilling in the Boundary Zone at Macmillan Pass but also exploration of new target areas

Fireweed CEO Brandon Macdonald stated, “Thanks to impressive investor demand we are able to close this financing on proceeds almost 50% higher than what we opened on. Now, building on last year’s best holes ever at Boundary including 100 metres of 7.94% zinc from surface including 6.4 metres of 42.88% zinc, we can 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 consists of three parts for gross proceeds of CAD$5,239,351 as follows:

1. 3,154,673 units (“Units”) of the Company at a price of CAD$0.53 per Unit, each Unit consisting of one non-flow-through common share and a half two-year warrant exercisable at CAD$0.80 per share;
2. 3,582,423 flow-through common shares of the Company at a price of CAD$0.65 per share (“Flow-Through Shares”); and
3. 1,630,000 flow-through common shares of the Company at a price of CAD$0.76 per share through a donation arrangement (“Charity Flow-Through Units”) 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 and Charity Flow-Through Shares. The Company will pay finders fees in compliance with the policies of the TSX Venture Exchange and applicable securities legislation, to arm’s length finders in connection with subscriptions from subscribers introduced by them, totaling $131,691 and 232,386 warrants. All finder’s warrants are exercisable for 12 months from the date of issuance to acquire common shares of the Company at an exercise price of $0.60 per share for the 75,532 warrants issued for the $0.53 Units, $0.65 per share for the 71,054 warrants issued for the $0.65 Flow-Through Shares, and $0.76 per share for the 85,800 issued for the Charity Flow-Through Units. The Company also paid 56,604 Units (56,604 shares and 28,302 two-year warrants exercisable at CAD$0.80) to an arm’s length party for corporate finance services.