RCF invests in $10.2 mln financing of Canadian Zinc

U.S. mining private equity firm Resource Capital Funds (RCF) has acquired shares in Canadian Zinc Corp (TSX: CZN). RCF invested $5 million as part of a public offering of common shares and flow-through shares that gave the company total gross proceeds of $10.2 million. With the deal, RCF holds about 16.9 percent of issued and outstanding shares. In a separate statement, Vancouver-based Canadian Zinc said it plans to use the funds raised for feasibility, development and exploration programs related to its Prairie Creek Project, a zinc-lead-silver property in the Northwest Territories, and its properties in Newfoundland.

PRESS RELEASE

Resource Capital Fund VI L.P. Announces Acquisition of Common Shares in Canadian Zinc Corporation

DENVER, July 7, 2016 /CNW/ – Resource Capital Fund VI L.P. (“RCF VI”) reports that it has purchased 20,000,000 common shares (the “Purchased Shares”) in the capital of Canadian Zinc Corporation (the “Company”) in connection with a previously announced public offering (the “Offering”) by the Company of 34,135,000 common shares and 6,665,000 flow-through shares, for aggregate gross proceeds to the Company of C$10,200,000, which completed as of July 7, 2016. The Purchased Shares were acquired at a price of C$0.25 per Purchased Share, for gross proceeds paid to the Company by RCF VI of C$5 million.

The 20,000,000 Purchased Shares represent approximately 7.73% of the issued and outstanding common shares in the capital of the Company (the “Common Shares”) after giving effect to the Offering. Prior to the acquisition of the Purchased Shares, RCF VI owned and controlled, directly or indirectly, 23,767,000 Common Shares, representing approximately 10.89% of the issued and outstanding Common Shares. Following the acquisition of the Purchased Shares, RCF VI owns and controls, directly or indirectly, 43,767,000 Common Shares, representing approximately 16.9% of the current issued and outstanding Common Shares after giving effect to the Offering.

RCF VI acquired the Purchased Shares for investment purposes. RCF VI may from time to time acquire additional securities, dispose of some or all of the existing or additional securities or may continue to hold the securities of the Company.

The Company’s head office is located at 650 West Georgia Street, Suite 1710, P.O. Box 11644, Vancouver, British Columbia, V6B 4N9.

To obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transactions hereunder, please see the Company’s profile on the SEDAR website www.sedar.com.

About Resource Capital Fund VI L.P.

RCF VI is a private investment fund existing under the laws of the Cayman Islands.

For further information: and to obtain a copy of the early warning report, please contact: Resource Capital Fund VI L.P., 1400 Sixteenth Street, Suite 200, Denver, CO, 80202, Telephone: (720) 946-1444, Attn: Molly Campbell

Photo courtesy of Canadian Zinc Corp