Jun. 1, 2009 (Filing Services Canada) -- Canada Zinc Metals Corp. (CZX - TSX Venture, MTSZF - OTCBB, AOF7E1 - FWB), ("Canada Zinc Metals" or the "Company") is pleased to announce that, further to its news releases dated January 26, 2009 and March 23, 2009, it has received final approvals from the TSX Venture Exchange and the relevant Chinese authorities with respect to the closing of the non-brokered private placement subscribed to by Tongling Nonferrous Metals Group Holdings Co. Ltd. ("Tongling").
Pursuant to the private placement, Tongling has purchased 11,500,000 units of the Company at a price of $0.425 per unit for gross proceeds of $4,887,500 and now holds a 13% equity position in Canada Zinc Metals. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant entitles Tongling to purchase, at any time within 24 months from closing, one common share of the Company at a price of $0.60 during the first year and at a price of $0.80 during the second year. These units are subject to a hold period expiring on September 27, 2009.
"We welcome Tongling as a strategic shareholder of Canada Zinc Metals," stated Mr. Peeyush Varshney, CEO of Canada Zinc Metals. "Our Company continues to attract the interest of the world's premier base metal mining companies. The Cardiac Creek deposit is one of the most significant discoveries in Canada in the past several years."
The proceeds of the private placement will be used to fund further exploration and advancement of the Company's SEDEX zinc-lead properties and for working capital purposes.
"Along with the Akie property, Canada Zinc Metals' significant prospective land package in the Kechika Trough represents a potential long-term district development opportunity," commented Mr. Li Dongqing, Chief Engineering Officer of Tongling. "We look forward to continuing to build our relationship with the Company."
Tongling Nonferrous Metals Group Holdings Co. Ltd., based in Tongling, Anhui, is a state-owned holding company, and one of China's largest copper smelting companies. Tongling's principal activities are exploration, mining, ore processing, smelting & refining and products processing of copper, lead, zinc, gold, silver and other non-ferrous and rare metals.
About Canada Zinc Metals Corp.
Canada Zinc Metals is a mineral exploration company focused on unlocking the potential of a future long life mining district in British Columbia, Canada. The Company is the dominant land holder in a world class mineral belt called the Kechika Trough which hosts in excess of 80 million tonnes of base metal resources. Canada Zinc Metals owns a total of 78,526 hectares in 233 claims which extend northwestward from the Akie property for a distance of 125 km.
About the Akie Property
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 filed a NI 43-101 report supporting the estimated inferred resource of 23.6 million tonnes grading 7.6% Zn, 1.5% Pb and 13.0 g/t Ag (at a 5% Zn cut off grade). The complete NI 43-101 technical report, titled "Geology, Diamond Drilling and Preliminary Resource Estimation, Akie Zinc-Lead-Silver Property, Northeast British Columbia, Canada" and dated May 30, 2008, can be viewed on SEDAR.
Two similar deposits, Cirque and South Cirque, located some 20 km northwest of Akie and owned under a joint venture by Teck Cominco and Korea Zinc, are also hosted by Gunsteel rocks and have a combined geologic inventory in excess of 50 million tonnes.
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
Contact: Investor Relations
Phone (604) 684-2181
Source: Canada Zinc Metals Corp. (CZX - TSX-V) (MTSZF - OTCBB)
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